A Compensation Plan That Results in the Distribution of a Predetermined

question 133

Multiple Choice

A compensation plan that results in the distribution of a predetermined percentage of the firm's profits to employees is referred to as ________.

• A) team sharing
• B) piecework
• C) profit sharing
• D) broadbanding

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Definitions:

Accounting Break-Even

The point at which total revenues equal total expenses, and the company generates neither profit nor loss from operations.

Depreciation Expense

The portion of the cost of a fixed asset that is considered as an expense due to its use, wear and tear, or obsolescence over its useful life.

Tax Rate

The metric used to figure out the tax obligation of individuals and corporate entities.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.