Which of the Following Is an Example of Nonfinancial Compensation

question 85

Multiple Choice

Which of the following is an example of nonfinancial compensation?

• A) bonuses
• B) employee recognition programs
• C) health insurance
• D) incentives

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Definitions:

Interest

The cost of borrowing money, represented as a percentage of the principal, paid by the borrower to the lender for the use of the funds.

Interest Paid

The total amount of interest expense that a borrower has paid to lenders during a specific period, reflecting the cost of borrowing money.

Bonds Issued

Debt securities sold by corporations or governments to raise funds, to be repaid at a future date.

Capital Lease

A contractual arrangement that transfers substantially all the benefits and risks of ownership to the lessee so that the lease is in effect a purchase of the property.