The Tips Received by a Tipped Employee Are Less Than

question 94

Multiple Choice

The tips received by a tipped employee are less than $5.12 of the minimum hourly tip credit rate. The maximum permissible tip credit is:

• A) $30 a month.
• B) $5.12 an hour.
• C) 45% of the employee's minimum wage.
• D) 50% of the employee's minimum wage.
• E) the amount of tips actually received by the employee.

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Definitions:

Assets

Economic resources owned by a business or individual that are expected to provide future benefits.

Par Value

The face value of a bond or stock as stated by the issuer, which bears importance in the legal capital of a company.

Land

A physical, immovable property asset, representing the earth's surface not including bodies of water or resources below the surface.

Cash Dividend

A distribution of profits by a corporation to its shareholders in the form of cash.