Question: _________blank is a variable pay plan where payout depends not on company level performance such as profitability, but rather on performance at some subunit such

_________blank is a variable pay plan where payout depends not on company level performance such as profitability, but rather on performance at some subunit such as a plant or facility. Multiple Choice A. Merit bonus B. Gain sharing C. Profit sharing D. Individual incentive

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2. Find out if there are other reference points that can be used as reasonable alternatives.

1. Identify your reference point when making a decision based on an element of risk.

3. If there are reasonable alternatives, think about your decisions based on the different reference points and see if there are any contradictions in the decisions.