Which of the Following Statements Is TRUE About Employee Handbooks

question 126

Multiple Choice

Which of the following statements is TRUE about employee handbooks?

• A) Employee handbooks are disappearing because of the high number of "implied contract" lawsuits which have been based on handbooks.
• B) The proper use of disclaimers in employee handbooks can preserve the employer's right to discharge employees with or without cause.
• C) If employee handbooks are used, the employer should view them as an enforceable contract with the employees.
• D) Language in the employee handbook should be vague enough to allow flexibility in interpretation when organizational procedures and rules are implemented.

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Definitions:

Future Value

The value of an investment at a specified date in the future, taking into account factors like interest rates and compound interest.

Interest-on-Interest

Earnings on the reinvestment of previous interest payments on fixed income investments or savings.

Reinvested

The process of using earned profits or dividends to purchase additional shares or assets, rather than distributing them as dividends.

Investment

Allocation of resources, such as time, money, or effort, in hope of future benefits or returns.