Question

Upon being hired as a marketing representative at Argo Pharmaceuticals, Shelly agreed to forego 5% of her normal pay if she failed to meet performance goals. In return, Shelly will receive a 10% bonus if she exceeds her goals. In what type of plan does Shelly most likely participate?
A) earnings-at-risk pay plan
B) variable risk sharing plan
C) at-risk gainsharing plan
D) risk-reward stock plan

Answer

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