Which of the Following Terms Refers to a Lump-Sum Payment

question 47

Multiple Choice

Which of the following terms refers to a lump-sum payment given to employees as a reward for moving from one assignment to another?

• A)hardship allowance
• B)foreign service premium
• C)cost-of-living allowance
• D)mobility premium

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Definitions:

Interest-Bearing Note

A debt security that pays interest to the holder until it matures, at which point the principal is reimbursed.

Discounting

The process of determining the present value of a payment or a stream of payments that is to be received in the future.

Note Payable

A financial obligation or loan documented by a written promissory note specifying repayment terms.

Interest-Bearing Note

A debt instrument or loan that accrues interest over time, which the borrower is required to pay.