Which of the Following Is an Example of a Disincentive

question 115

Multiple Choice

Which of the following is an example of a disincentive?

• A)Law enforcement creates a "Mug Shots" section to post all recent arrests online in order to discourage potential law breakers.
• B)You offer workers a bonus if they sell 100 widgets per month.
• C)A local gym offers a weight loss competition and the winner earns a free trip to Bermuda.
• D)Your professor offers to edit your paper before it's graded if you turn it in early.

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Definitions:

Proceeds

Maturity value less bank discount.

Contingent Liability

Liability on the part of one who discounts a note if the maker of the note defaults at maturity date.

Discounted Note

A debt instrument that is sold or issued for less than its face value.

Maturity Value

The sum payable to the holder of a financial instrument at the end of its term, encompassing the principal amount plus any accrued interest.