Since stock prices can fall as well as rise, there is a risk associated with respect to __________ and that risk must be considered in respect to the motivational value of such pay systems.

A) merit pay systems
B) ESOPs
C) lump-sum increases
D) lump-sum payments
E) fringe benefit systems

Stock Prices

represent the value of a company's shares as quoted on a stock exchange, reflecting investor perceptions of the company's future financial performance.

ESOPs

An Employee Stock Ownership Plan, a program that provides a company's workforce with an ownership interest in the company.

Motivational Value

The inherent capacity of a stimulus, activity, or goal to evoke a motivational response or encourage sustained engagement and effort.