An Example of a Direct Positive Incentive Is

question 51

Multiple Choice

An example of a direct positive incentive is

• A) a prison sentence for committing a crime.
• B) unemployment insurance for those who are laid off.
• C) providing a workplace safety program.
• D) providing a commission for sales.
• E) threatening to fire those who do not perform well.

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Definitions:

Incremental Cash Flow

is the additional cash flow generated by a company from a new project or investment, used to analyze the profitability of taking on the new project.

Sunk Cost

A cost that has already been incurred and cannot be recovered, which should not influence future business decisions.

Fixed Cost Financing

A financing strategy where the costs remain constant regardless of the level of production or sales.

Future Cash Flows

Expected cash receipts and payments a business anticipates receiving or paying out over a future period.