A Deferred-Payment Contract

question 126

Multiple Choice

A deferred-payment contract

• A)gives employers an incentive to keep workers.
• B)gives workers an incentive to stay with the employer.
• C)gives workers an incentive to leave the employer early.
• D)makes workers quit immediately.
• E)gives workers an incentive to work less.

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Definitions:

Promissory Note

A written, legally binding document in which one party promises to pay another a specific sum of money, either on demand or at a defined future date.

Maker

The individual or entity that creates or signs a promissory note, thereby agreeing to pay the note's value at maturity.

Certified Check

A type of check for which the issuing bank guarantees the availability of funds by verifying and setting aside the check amount.

Maker

The individual or entity that creates or signs a promissory note, committing to pay the specified amount.