Immediately upon being promoted to store manager in a bookstore,Rachel receives details of her new compensation package: her salary is tied to store profit,and she must customize her benefit plan.This manager's pay structure is a form of ________,and her benefit plan is ________.
A) at-risk compensation; traditional
B) at-risk compensation; cafeteria-style
C) variable compensation; traditional
D) piece-rate compensation; cafeteria-style

Question

Quizplus · Accepted Answer

Rachel's salary being tied to store profit indicates an at-risk compensation model, where earnings are directly related to performance outcomes. The option to customize her benefit plan suggests a cafeteria-style benefits plan, where employees can choose from a variety of benefits to tailor the plan to their personal needs.

Immediately Upon Being Promoted to Store Manager in a Bookstore,Rachel