Situations in Which fiRms Expect One Thing to Happen but Then

question 58

Multiple Choice

Situations in which firms expect one thing to happen but then something else happens are called

• A) recessions.
• B) shocks.
• C) business cycles.
• D) fluctuations.

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Definitions:

Indirect Pay

Compensation that is not paid directly as cash but includes benefits like health insurance, retirement plans, and paid time off.

Health Care Spending Accounts

Accounts that allow employees to set aside pre-tax dollars to pay for eligible health care expenses not covered by their insurance.

Fixed Benefits Plan

A type of employee benefits plan where the benefits provided are predetermined and not based on individual performance or company profitability.

Defined Benefit Plan

A pension plan that guarantees a specified monthly benefit at retirement, which is predetermined by a formula based on the employee's earnings history, tenure of service, and age.