Deferred Compensation Is an Aspect of Many Employment Contracts

question 10

Multiple Choice

Deferred compensation is an aspect of many employment contracts. For example, workers sometimes receive a bonus for staying with the firm for some specified period of time. In which of the following situations is deferred compensation likely to be a feature of the employment contract?

• A)The firm incurs little cost when it hires a new worker.
• B)It takes new workers a considerable time to learn the job.
• C)The work is routine and involves no learning on the job.
• D)The work is extremely distasteful.

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Definitions:

De Jure Corporation

a corporation that is legally established and operating in accordance with the law.

Common Stock

Corporate stock that does not convey any preference to its holders.

Preferred Stock

Stock that conveys preferences to its holder with respect to assets and dividends.

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Individuals or entities that agree to receive and often pay for a service or product regularly.