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Question
Which of the following statements is true regarding a merit-based pay plan?
A) It bases pay levels on how many skills employees have or how many jobs they can do.
B) It is also called competency-based pay plan.
C) Unions typically resist merit-based pay plan.
D) It distributes compensation based on an established formula designed around a company's profitability.
E) A typical merit-based pay plan provides no base salary and pays the employee only for what he or she produces.
Answer
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