Which of the Following Statements About Incentive Pay Ceilings Is

Multiple Choice

Which of the following statements about incentive pay ceilings is true?

A) Incentive ceilings can be used to protect against windfalls
B) Incentive ceilings make a firm's maximum potential sales compensation expense more predictable and controllable
C) Firms in relatively low paying industries are more likely to impose incentive ceilings than those in high-paying industries
D) Incentive ceilings are used to ensure that top-performing salespeople will not make such high earnings that other employees suffer resentment and low morale
E) All of the above statements about incentive ceilings are true