Discuss Three Reasons Why a Firm May Want to Impose

question 124

Essay

Discuss three reasons why a firm may want to impose soft capital rationing.

---

Definitions:

Long Service Leave

An employee benefit that grants extended paid leave for those who have been employed for a long period with the same employer.

Projected Wages

An estimate of future wage payments based on current contracts, salary trends, and other factors affecting compensation over a defined period.

Eligible Employees

Employees who meet certain criteria set by their employer or legal guidelines, making them qualified for specific benefits or programs.

Termination Benefits

Payments or other benefits provided to employees as a result of ending their employment before the normal retirement date.