Compared to Owners,employees Receive a Large Fraction of Their Incomes

question 25

Multiple Choice

Compared to owners,employees receive a large fraction of their incomes from their employers and are consequently dependent on the fortunes of that company in the marketplace.From a 'risk-sharing' perspective,an employee tends to prefer:

• A)a flat salary.
• B)output-based incentive pay.
• C)year-end based performance pay.
• D)commission-based incentive pay.

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Definitions:

Axons

Long, slender projections of nerve cells that conduct electrical impulses away from the neuron's cell body to other neurons, muscles, or glands.

Nerve Impulses

Electrical signals that are transmitted along nerve fibers in the nervous system.

Synapse

A junction between two nerve cells, consisting of a minute gap across which impulses pass by diffusion of a neurotransmitter.

Neurotransmitter

Chemical substances in the brain and body that transmit signals from one neuron to another, influencing various functions including mood, appetite, and sleep.