In which of the following scenarios is the compensation plan element of gainsharing used?
A. Landon gets an additional 10 percent increase in salary each year if he meets his goals.
B. The members of Shae's distribution unit get an extra seven percent salary if they meet their goals.
C. Nigel gets an extra paycheck because his supervisors rank him as their most valuable employee.
D. Florida receives a set payment for each dog she grooms.
E. Angelina gets a free large screen television because she stayed after work hours to fix a software glitch.
Answer: B
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Indicate whether the statement is true or false
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The 2014 net income of Beguile Inc was $200,000 and 100,000 shares of its common stock were outstanding during the entire year. In addition, there were outstanding options to purchase 10,000 shares of common stock at $10 per share. These options were granted in 2011 and none had been exercised by December 31 . 2014 . Market prices of Beguile's common stock during 2014 were January 1 $20 per share
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