Why Does Company Profitability Decrease in Direct Proportion to the Payroll

question 62

Multiple Choice

Why does company profitability decrease in direct proportion to the payroll expenses?

• A) Because payroll represents an asset and an income of the business. The higher payroll incomes are, the higher the profitability will be.
• B) Because payroll represents an asset and an income of the business. The lower the payroll expenses are, the higher the profitability will be.
• C) Because payroll represents a liability and an expense of the business. The higher payroll expenses are, the lower the profitability will be.
• D) Because payroll represents a liability and an expense of the business. The lower payroll expenses

---

Definitions:

Variable-ratio

A reinforcement schedule in behavioral psychology where a response is reinforced after an unpredictable number of responses.

Latent Learning

A form of learning that occurs without any obvious reinforcement of the behavior or associations that are learned.

Discrimination Learning

The process of learning to respond differently to various stimuli or situations, often by recognizing differences.

Cognitive Map

A cognitive map is a mental representation of a person's physical environment, allowing them to navigate and understand spatial information.