Which of the Following Statements Regarding Performance Incentives Is NOT

Multiple Choice

Which of the following statements regarding performance incentives is NOT true?

A) Employees who are heavily rewarded by commissions may neglect customers who provide them with a low probability of making a sale.
B) When awarded stock options,employees tend to hold on to them rather than sell them.
C) Profit sharing is not very effective at tying employee pay to individual effort.
D) Gainsharing programs can be successful if the payout formula is generous and employees can participate in the management of the company.