Given That D_n Is the Amount of Deferred Compensation Received

question 44

Multiple Choice

Given that D_n is the amount of deferred compensation received in lieu of $1 currently,which one of the following decision rules can the employee and the employer apply when evaluating whether deferred compensation is preferable to current salary?

• A)If the employee's indifference level of D_n exceeds the employer's indifference level of D_n,the employer will pay deferred compensation up to the employee's indifference level.
• B)If the employee's indifference level of D_n is less than the employer's indifference level of D_n,the employee will only receive a current salary because the employer will not pay the employee's required deferred compensation.
• C)If the employee's indifference level of D_n is less than the employer's indifference level of D_n,the employer can pay deferred compensation up to its indifference level.
• D)None of the decision rules in A,B,or C above hold true.

---

Definitions:

Moral Philosophy

The branch of philosophy dealing with values relating to human conduct, with respect to the rightness and wrongness of certain actions and to the goodness and badness of the motives and ends of such actions.

Ethical Behavior

Conducting oneself in a manner that adheres to principles of morality and fairness in all aspects of life, including business practices.

Hedonism

Hedonism is the ethical theory that pleasure (in the sense of the satisfaction of desires) is the highest good and proper aim of human life.

Existentialism

Existentialism is a philosophical theory emphasizing individual freedom, choice, and personal responsibility, positing that individuals create their own meaning in life.