The Least Risky Payment Plan from the Viewpoint of the Worker

question 24

Multiple Choice

The least risky payment plan from the viewpoint of the worker is:

• A)piece rate.
• B)profit sharing.
• C)revenue sharing.
• D)hourly wage.

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Definitions:

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

Payout Ratio

A financial metric that shows the proportion of earnings a company pays to its shareholders in the form of dividends.

Internal Growth Rate

The highest amount of growth achievable for a business without obtaining external financing, based solely on reinvestment of its earnings.

Plowback Ratio

Also known as the retention rate, it measures the proportion of earnings that a company retains and reinvests in its operations rather than paying out as dividends.