Danny Ocean Corporation Has an Incentive Compensation Plan Under Which

question 24

Multiple Choice

Danny Ocean Corporation has an incentive compensation plan under which the sales manager receives a bonus equal to 10% of the company's income after deducting income taxes but before deducting the bonus. Income before income tax and the bonus is $80,000. The effective income tax rate is 40%. How much is the bonus?

• A) $4,320
• B) $4,800
• C) $5,000
• D) $8,000

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response which is initially elicited by the second stimulus is eventually elicited by the first stimulus alone.

Unconditioned Stimuli

Unconditioned stimuli are any stimuli that can naturally and automatically trigger a response without any learning process.

Unconditional Positive Regard

An aspect of client-centered therapy developed by Carl Rogers, referring to complete and total acceptance of a person regardless of what they say or do.

Questionable Motives

Refers to reasons for actions or behavior that may be considered suspicious or not clearly understood.