Use the Following Scenario to Answer the Questions That Follow

question 105

Multiple Choice

Use the following scenario to answer the questions that follow.
Amy can produce either 5,000 pounds of cheese or 20 houses per year. Jim can produce either 5,000 pounds of cheese or 10 houses per year.
-If both Amy and Jim produce only cheese,how much cheese can they produce per year?

• A) 2,500 pounds
• B) 5,000 pounds
• C) 7,500 pounds
• D) 10,000 pounds
• E) 12,500 pounds

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Definitions:

Gain-Sharing Plans

A performance-based compensation strategy where employees receive financial benefits from improvements in productivity, efficiency, or profitability within their work unit or organization.

Self-Funding

A method where an organization pays for its own health care costs rather than purchasing a conventional health insurance plan, often used to control costs.

Employee Stock Bonus Plan

is a company program allowing employees to acquire ownership in the form of stock as part of their benefits.

Phantom Shares

A compensation mechanism where employees receive benefits linked to stock ownership without actually owning company shares, often tied to performance milestones.