Which of the Following Is an Example of a Compensating

question 313

Multiple Choice

Which of the following is an example of a compensating differential?

• A)Two workers with different levels of on-the-job training earn different salaries.
• B)Two workers whose jobs entail different working conditions earn different salaries.
• C)Two workers whose jobs require different levels of technical expertise earn different salaries.
• D)Two workers with different levels of natural ability earn different salaries.

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Definitions:

Accounts Receivable

Accounts Receivable is the money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Liabilities or money owed by a business to its suppliers or creditors for goods or services received.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings.

Market Price

The present rate at which a service or asset is available for purchase or sale in a market.