Which of the Following Statements Regarding Performance Incentives Is True

Multiple Choice

Which of the following statements regarding performance incentives is true?

A) Employees tend to hold onto stock options rather than sell them.
B) Merit pay is a successful program because employees recognize they will be rewarded only if performance increases.
C) Profit sharing is very effective in tying individual pay to employee effort.
D) Companies are increasingly choosing to implement team- or group-based pay-for-performance programs over individual-based pay-for-performance programs.