Assume That You Are an Entrepreneur and You Want to Reward

question 49

Multiple Choice

Assume that you are an entrepreneur and you want to reward your employees by giving them a certain percentage of the profits that the business earns. This is known as

• A) employee stock ownership plan.
• B) stock option.
• C) free-riding.
• D) profit sharing.
• E) None of the above are correct.

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Definitions:

Journal Entries

The method by which financial transactions are recorded in the accounting records of a business, detailing the accounts affected and the amounts.

Maturity Date

The date on which a financial obligation must be repaid or a bond or other instrument reaches its expiration and the principal is due back to the investors.

Note Receivable

A claim or debt that one party owes to another under the terms of a promissory note, indicating money to be received.

Perpetual Inventory System

An inventory management system where records of inventory quantities are updated on a continuous basis as transactions occur.