Under Which of the Following Plans Does an Organization Pay

question 35

Multiple Choice

Under which of the following plans does an organization pay an employee a certain amount of money for every unit he or she produces?

• A) A piece-rate incentive plan
• B) The merit-pay plan
• C) The Scanlon plan
• D) A gainsharing plan

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Definitions:

Guaranty

A legal commitment by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults.

Suretyship

A contractual agreement where a party (surety) agrees to be responsible for the debt or obligations of another party (principal) if that party fails to fulfill them.

Cosigner

an individual who agrees to be responsible for the repayment of a loan or debt if the primary borrower fails to pay.

Bankruptcy

A legal procedure for dealing with debt problems of individuals or businesses; officially declared inability to pay off debts.