Which of the Following Is Not True Concerning Performance Bonuses

question 84

Multiple Choice

Which of the following is not true concerning performance bonuses?

• A)They do not automatically carry over from one time period to the next.
• B)Effective bonus systems are based on specific,measurable and attainable goals.
• C)They are generally used as an individual incentive,but in some cases can be used for groups.
• D)Bonus payment should be paid immediately upon reaching the goal,not based on time.
• E)They should be given on an ongoing,annualized basis in order to create entitlement.

Grasp methods for solving personality differences and improving interpersonal communication.

Recognize the importance of self-concept and its influence on personal life quality.

Understand the primary goal of human beings according to S.I. Hayakawa.

Acknowledge the contributions of different personality types in creating a balanced and effective work environment.

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Definitions:

Interest Tax Shield

The decrease in income tax owed that occurs when interest payments on borrowed funds are subtracted from taxable income.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the bond's face value, generating regular income for investors.

WACC

Stands for Weighted Average Cost of Capital, a measure of a firm's cost of capital in which each category of capital is proportionately weighted.

Corporate Taxes

Taxes imposed on the income or profit of corporations by the government.