Which of the Following Statements Regarding Compensation Is False

question 78

Multiple Choice

Which of the following statements regarding compensation is false?

• A) Bonuses are a form of compensation obtained if certain criteria are met.
• B) Bonuses paid within 2½ months of year-end are included in employee's compensation in the year they were earned.
• C) Wages are usually paid by the hour.
• D) Salary is usually a form of fixed compensation.

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Definitions:

First Mover

A company that gains a competitive advantage by being the first to market with a new product or service.

Theory of Absolute Advantage

An economic theory proposed by Adam Smith, which suggests that countries should specialize in the production of goods for which they have an absolute advantage.

Theory of Comparative Advantage

An economic principle stating that countries or entities benefit from specializing in and exporting goods for which they have a lower opportunity cost.

Theory of Economies of Scale

An economic concept that describes how as a firm increases its production scale, the average cost per unit of output decreases, leading to increased efficiency.