1. Compensation programs should have significant discretion and flexibility to allow hiring managers to establish pay rates higher or lower, based on the demands of the individual candidate. True or False?

2. Employers generally should consider prevailing market rates of pay in their area when determining their pay levels. True or False

3. If a business becomes highly profitable, it is advisable for leaders to consider adjusting compensation packages to reward the employees with higher wages and increased benefits. True or False