What Are Golden Parachutes

question 22

Multiple Choice

What are golden parachutes?

• A) the rights of the managers to lay off employees if they are not performing well
• B) the rights of the customers to receive compensation if the product bought by them is faulty
• C) rights of the managers to receive large sums of money if they are fired when their company is taken over
• D) the rights of the workers to receive compensation if they are injured on the job

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Definitions:

Cash Discounts

A reduction in invoice amount offered by sellers to buyers as an incentive for early payment.

Trade Accounts Payable

Liabilities owed to suppliers for goods and services received that are yet to be paid for by the business.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and equity at a specific point in time, showing the company's financial condition.

Scrip Dividends

A form of dividend payment made by a company to its shareholders in the form of additional stock, instead of cash.