Question

ABC Inc. is a very small firm. It has decided to pay its employees at rates that are similar to other small firms in its geographic area. What method of pay is ABC Inc. using?

Answer 1

ABC Inc. is using a method of pay known as market-based or market rate pay.

Step-by-step explanation:

ABC Inc. is using a method of pay known as market-based or market rate pay. This means that they are paying their employees at rates that are similar to other small firms in their geographic area. Market-based pay is commonly used by small firms to remain competitive in the local labor market and attract and retain skilled employees.