Which of the following is a disadvantage of incentive compensation plans?

A. Employers are taxed heavily on their expenditure incurred through incentive plans.
B. Employers are unable to increase employee productivity while following incentive plans.
C. Employees know that a rise in productivity will have no impact on their compensation.
D. Employees are taxed heavily on their income from incentive plans.
E. Employees don't develop loyalty to their employers when incentive plans are practiced.


Answer: E

Business

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