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Which of the Following Statements About Earnings-At-Risk Pay Plans Is

Question 61

Multiple Choice

Which of the following statements about earnings-at-risk pay plans is true?


A) Earnings-at-risk plans involve upside risk for the employer.
B) Earnings-at-risk plans set base pay at or above the market rate.
C) Salespeople who work on straight commissions are paid through at earnings-at-risk plan.
D) Earnings-at-risk plans all have caps that prevent the employer from having to pay above a certain predetermined level.
E) Employees prefer earnings-at-risk plans to all other performance-based pay plans

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