Which of the Following Terms Describes a Contract by Which

question 16

Multiple Choice

Which of the following terms describes a contract by which the value of the compensation depends on the measured performance of the employee?

• A)Explicit incentive contract
• B)Implicit incentive contract
• C)Risk sharing contract
• D)Compensation contract
• E)Pay-for-performance contract

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Definitions:

Maturity

The date on which a financial obligation, such as a bond or loan, is due to be fully repaid.

Receivable

An amount owed to a business, typically by customers, that is expected to be paid within a short duration.

Party

An individual or entity involved in a legal transaction or agreement.

Federal Laws

Laws created and enforced by the federal government of a country.