Compensating Differentials Are Used to Motivate Employees and to Reduce

question 27

True/False

Compensating differentials are used to motivate employees and to reduce worker turnover.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested in the business.

Earnings Per Share

A financial metric calculated by dividing a company's net income by the number of its outstanding shares.

Dividend Per Share

The amount of dividend that is paid out for each share of stock held by shareholders.