A Piece-Rate Contract Is a Labor Contract in Which a Worker

question 148

Multiple Choice

A piece-rate contract is a labor contract in which a worker is

• A)promised a given percentage increase in wage every year.
• B)told how many pieces he or she must produce each day.
• C)guaranteed a piece of the company profits.
• D)paid according to a complicated formula involving the interest rate.
• E)paid a given amount for each unit of output he or she produces.

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Definitions:

Typical Consolidation

The process of combining multiple financial statements from different entities into one aggregate financial statement.

Net Present Value

A calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate, to determine its profitability.

Acquisition

The process of obtaining control of another corporation, purchasing a significant amount of its stock, or buying its assets.

Circular Bid

Corporate takeover bid communicated to the shareholders by direct mail.