A Medium-Sized Law Firm Every Year Distributes a Bonus to Its

question 24

Multiple Choice

A medium-sized law firm every year distributes a bonus to its employees based on the size of the cases it has won. Even though not every employee has worked on every case, the senior partners of the law firm feel that such a bonus motivates employees to cooperate with and assist one another in times of high workloads. Which type of incentive are they using?

• A)team
• B)organizational
• C)individual
• D)group

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Definitions:

Vertical Equity

A principle in taxation that states taxpayers with a greater ability to pay should contribute more in taxes.

Regressive Tax

A tax for which high-income taxpayers pay a smaller fraction of their income than do low-income taxpayers.

Federal Tax Receipts

The revenue collected by the federal government from various taxes like income tax, corporation tax, and other levies.

Individual Income Taxes

Taxes levied on the income of individuals or households, varying with income levels.