An Agreement in Which an Employee Who Is Being Terminated

question 30

Multiple Choice

An agreement in which an employee who is being terminated agrees not to sue the employer in exchange for specific benefits is called a_____.

• A) yellow-dog contract
• B) separation agreement
• C) non-enforceable contract made under duress
• D) severance contract

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Definitions:

Clearing

The process of reconciling purchases and sales of various securities, commodities, or currencies and ensuring the correct transfer of funds.

Collection Float

The time period between when a check is deposited into a bank account and the funds become available.

Ledger Balance

represents the total balance in a general ledger account at the beginning of each day, including all transactions that have been posted.

Available Balance

The amount of funds in an account that is accessible for withdrawal or use, taking into account any holds or pending transactions.