Which of the Following Statements Is True Regarding Alternative Compensation

question 38

Multiple Choice

Which of the following statements is true regarding alternative compensation schemes?

• A)Alternative compensation schemes are always funded by the general body of taxpayers.
• B)Alternative compensation schemes are administered by private charities.
• C)Alternative compensation schemes are always better than the tort system of recovery of damages from the perspective of the victim.
• D)Alternative compensation schemes are generally premised on the basis of compensation regardless of fault.
• E)Alternative compensation schemes never have any sort of limit on the amount of recovery an injured party may obtain and the schemes are administered by trials in court.

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Definitions:

Markup

The amount added to the cost price of goods to cover overhead and profit when determining the selling price.

Total Cost Concept

An approach that takes into account all costs associated with the production and distribution of goods or services.

Cost-Plus Approach

A pricing strategy where a fixed percentage or amount of profit is added on top of the cost to produce or purchase goods or services.

Selling Expenses

are costs associated with marketing and selling a company's products or services, including advertising, sales staff salaries, and commissions.