Which of the Following Statements Is True Regarding a Merit-Based

Multiple Choice

Which of the following statements is true regarding a merit-based pay plan?

A) It distributes compensation based on an established formula designed around a company's profitability.
B) It bases pay levels on how many skills employees have or how many jobs they can do.
C) A typical merit-based pay plan provides no base salary and pays the employee only for what he or she produces.
D) Unions typically resist merit-based pay plan.
E) It is also called competency-based pay plan.