After a Very Successful Year When the Firm Exceeded Targeted

question 278

Multiple Choice

After a very successful year when the firm exceeded targeted earnings levels by 10 percent, each employee received extra pay equal to 10 percent of what they earned for the year. This plan is called

• A) merit salary.
• B) pay-for-knowledge.
• C) profit-sharing.
• D) gainsharing.
• E) pay-for-performance.

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Definitions:

Exculpatory Clause

A clause in a contract that basically frees one party (usually the drafter of the agreement) from all liability arising out of performance of the contract; generally based on factors such as consumer ignorance or a great deal of unexplained fine print that serve to deprive the less powerful party of a meaningful choice.

Liability Release

a legal document where one party agrees not to hold another party liable for risk, damage, or loss.

Green Hair

A hair color that has been dyed various shades of green or hair that has turned green due to exposure to chlorine or certain chemicals.

Legal Capacity

The ability of a person to understand the nature and effects of their actions under the law, thus being able to enter into a binding contract.