If a Business Promises to Pay All of Its Employees

question 40

Multiple Choice

If a business promises to pay all of its employees $500 to quit smoking, such an arrangement is a(n)

• A) valid, binding contract.
• B) obligation.
• C) commitment.
• D) gratuitous promise.
• E) quantum meruit.

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Definitions:

Internal Audits

Evaluations conducted internally to assess the effectiveness of a company's operations, controls, and compliance with regulations and policies.

Collusion

An illegal agreement between parties to deceive or defraud others, often involving price-fixing or the manipulation of markets.

Segregation of Duties

A key internal control that aims to reduce the risk of fraud and error by dividing responsibilities among different people or departments.

Employee

An individual who works part-time or full-time for another person or company in exchange for salary or wages.