Which of the Following Statements Best Explains Why Bonuses Are

question 8

Multiple Choice

Which of the following statements best explains why bonuses are less costly to the organization than general wage increases?

• A)Bonuses receive preferential tax treatment.
• B)The annual amount given as a bonus tends to be smaller than the annual amount given as a raise.
• C)Bonuses are frequently given in the form of non-cash items.
• D)Bonuses do not become part of employees' base wages.

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Definitions:

Contract

A binding legal arrangement agreed upon by two or more parties, enforceable through legal action.

Prestigious

Held in high esteem or regard; indicative of or conferring prestige or distinction.

Legal Age

The age at which an individual is recognized by law as being capable of assuming certain rights and responsibilities.

Insolvent

A financial state in which an individual or entity cannot meet their debt obligations or pay their bills as they become due.