Joe Has Been Promoted from a Pay Grade Three Job

question 18

Multiple Choice

Joe has been promoted from a pay grade three job making $3300 a month to a pay grade four job making $3300 a month. Why would Joe accept a promotion with no simultaneous increase in pay?

• A) Pay grade four jobs are easier.
• B) He will have greater opportunity for higher pay in the future.
• C) He was underpaid in his pay grade three job.
• D) He will be overpaid in his pay grade four job.
• E) None of these can be the reason.

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Cash Budget

A detailed plan showing how cash resources will be acquired and used over a specific time period.

Disbursements

The act of paying out money from a fund or account, typically for expenses or investments.

Financing

The process of providing funds for business activities, making purchases, or investing, which can come through various means like loans, equity investments, or credits.