Which of the Following Is Not a Performance Based Incentive

question 14

Multiple Choice

Which of the following is not a performance based incentive?

• A)A Nordstrom salesperson being paid a commission
• B)A Kraft brand manager receiving an end of year bonus
• C)A CEO receiving a stock option
• D)A recurring standard percentage end of year pay raise
• E)An employee receiving a special parking privilege award for the month

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Definitions:

Voidable Preferences

Transactions that can be invalidated by a bankruptcy trustee, often because they unfairly favor one creditor over others.

Transfer

The act of moving or conveying something from one person, place, or situation to another, often referring to the change of ownership of property or assets.

Creditor

An individual, company, or institution that lends money or extends credit, expecting to be repaid in the future.

Composition

An arrangement where creditors agree to accept a partial payment from a debtor instead of the full amount owed.