Behemoth Industries Has Experienced Huge Losses for the Last Three

question 84

Multiple Choice

Behemoth Industries has experienced huge losses for the last three years due to collapsing sales of their outdated product line.Behemoth's stock has plummeted on Wall Street because it has not met projected profits for the 24th straight quarter.Behemoth has moved to a pure pay-for-performance system that is tied to achievement of organizational profit goals.Which of the statements below are most likely to be TRUE?

• A) Only high performers at Behemoth can be certain that they will receive a pay increase.
• B) No Behemoth employee can expect he/she will receive a pay increase, regardless of his/her performance.
• C) All employees except those who are the worst performers can expect that they will receive a pay increase.
• D) Behemoth will be able to attract high performing employees from its competitors.

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Definitions:

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Maker

In terms of financial instruments, the maker is the party that creates or issues the instrument, such as a check or promissory note.

Payee

The party in a financial transaction who receives payment.

Note Receivable

A written promise that entitles the holder to receive a specified amount of money from another party at a future date.