Answer:
$247,800
Explanation:
Discount on bonds payable = $6,000
The discount on bonds payable should be amortized during the 30 coupon payments = $6,000 / 30 = $200
Only 4 years have passed until the partial redemption of the bonds, $200 x 8 = $1,600 of the discount on bonds payable had been amortized. The carrying value of the bonds = $500,000 - ($6,000 - $1,600) = $495,600
Since 50% of the bonds are being retired, the net amount used to calculate the retirement = $495,600 / 2 = $247,800
Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store, and downloads $300 worth of digital music from E-Music. To be enforceable, the contract that must be in writing is the purchase of
Answer:
the pair of stereo speakers
Explanation:
UCC rules and the Statute of Frauds state that any contract for the sale or lease of goods that are worth more than $500 should be in writing. The pair of speakers are worth $600, since they are worth more than $500, then any sales contract must be in writing.
"An investor has a portfolio of diversified blue chip stocks with a current market value of $350,000. The portfolio has a computed beta factor of 1.8. The customer wants to protect the portfolio from a declining market with the use of OEX contracts. The OEX closed this day at 350. To hedge with "at the money" contracts, the customer should:"
Answer: Buy 18 contracts
Explanation:
Hedging against the risk involved in an investment means the use of market strategies or financial instruments to offset risk.
When there is a drop in the market value, any loss that is incurred on the portfolio will have to be offset by the long puts gain. This implies that 10 put contracts will have to be required for hedging. This is calculated as:
= $350,000/(350 × 100)
= $350,000/35,000
= 10 contracts
Since the portfolio has a computed beta factor of 1.8, we then multiply 10 by 1.8. This will be:
= 10 × 1.8
= 18 contracts.
The _________________ is an accounting method that (a) estimates bad debts expense from credit sales during the period sales are recognized, and (b) reports accounts receivable at the estimated amount of cash to be collected. Multiple Choice Adjustment method for uncollectible debts.
Answer:
A) Allowance method of accounting bad debts
Explanation:
Based on the allowance method, the bad debts should be calculated on either credit sales i.e. income statement method or receivable aging method i.e. balance sheet method. Also, the account receivable should be recognized at net realizable value
Therefore the allowance method of accounting bad debts is an answer
Rondelle, the manager of a busy hair salon, knows that she needs to entrust many of her tasks to supervisors and other employees. _____ is this process of assigning tasks to lower-level supervisors and employees. Rondelle follows the 70 percent rule, which states that she should assign tasks to employees who can perform each task at least 70 percent as well as Rondelle can. Multiple Choice Delegation Span of control Handing Accountability Outputting
Answer: Delegation
Explanation: Delegation in the context above may simply be explained as the process whereby there is a shift in the responsibility of one person to another who will function as a deputy. When an individual usually a superior, who is the actual overseer of a certain process or routine entrusts or handover to another person due to one reason or the other such as tight scheduling or shortage of personnel. In most cases the new handler is usually a lower ranking official in the task such as in the scenario above and as such, the expected rate of output is slightly reduced.
Crystal Ship Knitwear, Inc., is expanding its offerings from handmade winter hats, scarves, and gloves to include clothing such as sweaters and knit outerwear. At the same time, it wants to open two retail stores and not rely entirely on online sales. To staff the new manufacturing facilities and brick-and-mortar stores properly, the company should conduct a(n) Group of answer choices
Answer: demand forecast
Explanation:
Demand forecast simply means predicting the demand for a particular good or service in order to determine supply and also make other necessary management decisions.
Based on the information that were provided in the question, to staff the new manufacturing facilities and brick-and-mortar stores properly, the company should conduct a demand forecast.
If the dollar appreciates, perhaps because of speculation or government policy, then U.S. net exports Group of answer choices increase which shifts aggregate demand right. increase which shifts aggregate demand left. decrease which shifts aggregate demand right. decrease which shifts aggregate demand left.
Answer: decrease which shifts aggregate demand left
Explanation:
Net exports is calculated when the value of a nation's total imports is deducted from the value of the nation's total exports.
When the dollar appreciates, perhaps because of speculation or government policy, then U.S. net exports decrease which shifts aggregate demand left. This is because due to the appreciation, goods that are made in other countries, that's the import will become cheaper and import rises while export reduces.
The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year $ 127,500 Cash dividends declared for the year 47,500 Proceeds from the sale of equipment 82,500 Gain on the sale of equipment 7,300 Cash dividends payable at the beginning of the year 19,500 Cash dividends payable at the end of the year 21,800 Net income for the year 93,500 What is the ending balance for retained earnings
Answer:
Explanation:
Retained earning is the amount of net income left for the business owners after paying out dividends to its shareholders , which can be utilized for further expansion as the strategy may require .
To calculate the retained earning for a particular period , the opening retained earning is added to the loss or profit and the dividends payout subtracted
Retained earning = Opening retained earning + net income - dividends paid
127,500+ 93,500 - 47,500
127,500+93,500 -47,500 = 173,500.
What are people with out a college education most likely to do
Sweet Leaf Tea,a Texas-based maker of bottled iced tea,is a small but fast-growing firm that has gained a loyal following for its use of fresh,organic ingredients in its beverages.Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup,Sweet Leaf refused because of the company's mission to provide a high-quality,organic beverage to consumers.The 11-year-old company has 50 employees,and its products are available in 30% of the U.S.market.Sweet Leaf Tea recently received multimillion dollar investments which will enable the business to expand its national presence. Which of the following,if true,would most likely undermine the argument that Sweet Leaf Tea should implement a corporate-level strategy of vertical integration?A) Sweet Leaf Tea lacks the facilities or knowledge to produce the raw ingredients for its beverages.B) Market research suggests that Sweet Leaf Tea customers primarily purchase only one flavor of tea.C) Most loyal customers of Sweet Leaf Tea purchase the beverage at neighborhood convenience stores.D) Sweet Leaf Tea has decided to lower its prices by replacing cane sugar with corn syrup in some of its beverages.
Answer:
Correct Answer:
A) Sweet Leaf Tea lacks the facilities or knowledge to produce the raw ingredients for its beverages.
Explanation:
Vertical integration is a strategy whereby a company owns or controls its suppliers, distributors or retail locations which helps to control its product value and supply chain associated with the product it is selling.
Also, vertical integration benefits companies by allowing them to control process, reduce costs and improve efficiencies of the product. Since Sweet Leaf Tea Company lacks the facilities or knowledge to produce the raw ingredients for its beverages, it would definitely undermine its ambition.
What profit-oriented pricing method is often used because of the difficulty in establishing a benchmark of sales or investment to show how much of a firm's effort is needed to achieve the target
Answer:a
Explanation:
To support the manufacture of desktop computers for their customers, Dell needs to order all the parts that go into the computer, such as hard drives, motherboards, and memory modules. Obviously the demand for these items is driven by the production schedule for the computers. What is the term used to describe demand for these parts?
Answer:
Dependent demand.
Explanation:
In order to support the manufacture of desktop computers for their customers, Dell needs to order all the parts that go into the computer, such as hard drives, motherboards, and memory modules.
Hence, the term used to describe demand for these parts is dependent demand.
A dependent demand can be defined as the situation whereby the demand for a specific product or item occurs as a result of the demand for another product or item. The two products are known as the lower level or child item and the higher level or parent items.
This simply means that, the components that goes into a computer are the lower level or child items while the computer itself is the higher level or parent item.
The government decides to increase its expenditures by $350. The multiplier in this economy is 4 and the tax rate is 22 percent. The net effect of this expansionary fiscal policy is to: Group of answer choices
Answer:
Increase the budget shortage by $42
Explanation:
The government decides to increase expenditure by $350
The multiplier in the income is 4
The tax rate is 22%
= 22/100
= 0.22
The first step is to calculate the increase in income
= $350×4
= 1,400
The tax revenue which will be derived from the new income can be calculated as follows
= 0.22×1,400
= 308
Therefore, the net effect can be calculated as follows
Net effect= $350-$308
= $42
Hence the net effect of this expansionary fiscal policy is to make an increase in the budget shortage by $42
Assume the following sales data for a company:
Current year $325,000
Preceding year 250,000
What is the percentage increase in sales from the preceding year to the current year?
a. 70%
b. 30%
c. 50%
d. 76.9%
Answer:
b. 30%
Explanation:
The computation of the percentage increased in sales from the previous year to the current year is shown below:
= (Current year Sale - Preceding year Sale) ÷ (Preceding year Sale )
= ($325,000 - $250,000) ÷ ($250,000)
= ($75,000) ÷ ($250,000)
= 30%
Hence, the correct option is b. 30%
We simply applied the above formula to determine the percentage increased in sales
The percentage that increased in sales from the preceding year to the current year is 30%. The correct option is b.
The computation of the percentage increased in sales from the previous year to the current year is shown below:
=(Current year Sale - Preceding year Sale) (Preceding year Sale)
=($325,000-$250,000)÷ ($250,000)
=($75,000)÷ ($250,000)
=30%
A sale is a transaction that involves the exchange of services or goods for a specific sum of money. In other terms, a sale is any activity that involves transferring ownership of a good or commodity to the buyer in exchange for a monetary price.
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Sam entered into a contract to sell his home to Gina. After the inspection, Gina insisted that Sam replace the damaged roof. Sam refused, and the parties agreed to cancel the deal. This is an example of ______.
Answer:
Mutually rescinding the contract.
Explanation:
In this scenario, Sam entered into a contract to sell his home to Gina. After the inspection, Gina insisted that Sam replace the damaged roof. However, Sam refused, and the parties agreed to cancel the deal. This is an example of Mutually rescinding the contract.
Mutually rescinding a contract refers to the act of annulment of a contract, by discharging or relieving both parties in the contract of their obligation by reaching an agreement after the execution of an original contract agreement.
Simply stated, it avails two parties in a contract, the opportunity and privilege to cancel or annul the contract by relieving them of their contractual obligations.
South Korea has developed amazingly, with huge corporations making vast amounts of money and giving everyone there a high standard of living, while the vast majority of people in the Central American nation of Guatemala are plagued by extreme poverty, violence, and poor living conditions. This is an example of:
Answer: Uneven Development
Explanation:
South Korea is one of the success stories of the last century. After the Korean War devastated large parts of the Korean peninsula, foreign aid poured in and the people embraced development fully. This led to the development of large corporations such as Samsung making vast amounts of money and giving everyone there a high standard of living.
Guatemala on the other hand has been ravaged by poverty and poor living conditions for a long time resulting from a bloody civil war that lasted for decades. This led to gangs been formed to compete for resources as well as illegal activities being carried out such as drug trafficking. This only made things worse.
These are 2 countries are a prime example of how countries in the world are experiencing Uneven Development. How in one nation the standards of living are high and people are safer but on the same planet and in another nation people are living in abject poverty and fearing constantly for their lives.
In terms of market efficiency, short selling most likely: Group of answer choices leads to excess volatility, which reduces market efficiency. has little effect on market efficiency because short sellers face the risk of unlimited losses. promotes market efficiency by making assets less likely to become overvalued.
Answer:
promotes market efficiency by making assets less likely to become overvalued.
Explanation:
Market efficiency can be defined as a measure of the degree to which prices in a market reflect all available and significant information at a specific period of time. A market is said to be efficient when all information has been incorporated into the prices of goods and services, and as such it is impossible to "beat" the market because there are no overvalued or undervalued stock.
In terms of market efficiency, short selling most likely promotes market efficiency by making assets less likely to become overvalued, because stocks are usually not allowed to be overpriced before selling them.
All the following statements concerning the interest settlement option in life insurance are correct EXCEPT: Group of answer choices the beneficiary may be allowed to withdraw part or all of the proceeds. the beneficiary may be allowed to change to another settlement option. the minimum guaranteed interest rate usually is equal to the prime rate. the interest can be paid monthly, quarterly, semiannually, or annually.
Answer:
the minimum guaranteed interest rate usually is equal to the prime rate.
Explanation:
Interest settlement in a life insurance policy involves the insurance company maintaining proceeds from the policy and investing it.
The policy holder is promised a minimum interest rate.
However there is no guarantee that the minimum interest rate will be equal to prime interest rate. Prime interest rate is the official lending rate that is given by banks.
The payment of interest can be monthly, quarterly, semiannually, or annually.
Beneficiary can withdraw all or part of the proceeds, and he has the option of switching to another settlement method.
Edwards Manufacturing Company purchases two component parts from three different suppliers. The suppliers have limited capacity, and no one supplier can meet all the company’s needs. In addition, the suppliers charge different prices for the components. Component price data (in price per unit) are as follows: Supplier Component 1 2 3 1 $10 $15 $14 2 $13 $12 $10 Each supplier has a limited capacity in terms of the total number of components it can supply. However, as long as Edwards provides sufficient advance orders, each supplier can devote its capacity to component 1, component 2, or any combination of the two components, if the total number of units ordered is within its capacity. Supplier capacities are as follows. Supplier 1 2 3 Capacity 1500 2500 2000 If the Edwards production plan for the next period includes 2,000 units of component 1 and 3,000 units of component 2, what purchases do you recommend
Answer:
Purchase 1,500 units of component 1 from supplier 1.
Purchase 2,000 units of component 2 from supplier 3.
Purchase 500 units of component 1 and 1,000 units of component 2 from supplier 2.
Total costs = $54,500
Explanation:
component 1 component 2
supplier 1 2 3 1 2 3
price $10 $15 $14 $13 $12 $10
capacity:
supplier 1 = 1,500
supplier 2 = 2,500
supplier 3 = 2,000
demand:
component 1 = 2,000component 2 = 3,000There are two ways to solve this, one using excel and the solver function or do it manually.
Manually, we must start with the supplier that has the lowest cost. In this case, the supplier with the lowest cost for component 1 is supplier 1 ($10) and component 2 is supplier 3 ($10).
We will start by purchasing 1,500 units of component 1 from supplier 1 at $15,000. That eliminates supplier 1's capacity, so we now only have suppliers 2 and 3. We still need 500 units of component 1 and 3,000 units of component 2.
We purchase 2,000 units of component 2 from supplier 3 at $20,000. This will consume all of supplier 3's capacity, so we only have supplier 2 left. We are still needing 500 units of component 1 and 1,000 units of component 2.
We will purchase the remaining units from supplier 3 at (500 x $15) + ($1,000 x $12) = $19,500.
Our total expense will be $54,500.
An arrangement where a property developed by the seller is sold to a buyer. The seller retains occupancy of the premises by signing a lease with the buyer. The seller, now the tenant, pays taxes, utilities, insurance and operating costs. This is called a ___________. This is a common practice for Walmart and Rite-Aide and many other businesses Group of answer choices sale rental agreement net lease investment lease-purchase option nome of the other answers
Answer:
B. net lease investment
Explanation:
The net lease investment is a type of commercial real estate arrangement where the tenant of a property is expected to pay rent along with either taxes, insurance, and maintenance. There are different types of net lease agreements. We have the;
1. Single net lease agreement where the tenant is expected to pay rent along with property taxes. The landlord pays for the operating costs of the property.
2. Double net lease agreements where the tenant, also known as lessor pays the rent, property taxes, and insurance. The landlord pays for the operating costs.
3. The triple net lease agreements where the tenant pays the rent, property insurance, and taxes, as well as the operating costs of maintenance.
Most businesses in the United States such as FedX, McDonald's, Walmart, and many others use this kind of real estate arrangement.
Explain the importance of international employment
Answer:
having international workers allow organisation to be connected two other country markets as well.they get to know the best places to get resources and how to approach different countries through being thought business norms and culture by international employees.
Answer:
Employment created through the investment of a country or the partnership of countries is known as international employment. International employment are important to provide employment opportunities to people , help in bringing the investment of foreign capital , increase the pace of economic activities , provide environment to operate with foreign people's knowledge , skill and technology , create variation in material production etc.
The owner of a property creates a deed, leaving the name of the grantee blank, and puts it in a drawer, where it is forgotten for several years. One day, a visitor finds the deed, fills in his name as grantee, and attempts to record it. However, the owner will probably have no trouble disputing the validity of the deed because
Answer is given below
Explanation:
The owner will probably have no trouble disputing the validity of the deed because the person listed as Granny allows the deed to be kept legally when it is filed, as well as the physical deed is clearly greedy, there is no way to dispute it unless the property owner has provided proof that the visitor has given his or her grading permission.Consider a small country that is closed to trade, so its net exports are equal to zero. The following equations describe the economy of this country in billions of dollars, where C is consumption, D is disposable income, I is investment, and G is government purchases: C=40+0.9∗DIG=80I=201. Assume that this economy initially has a fixed tax and that net taxes (taxes minus transfer payments are $100 billion. Disposable income is then (Y−100), where Y is the real GDP. Aggregate output demanded is $500 billion (True/False).2. Suppose the government decides to increase spending by $10 billion without raising taxes. Because the expenditure multiplier is 10 (True/False), this will increase the economy's aggregate output demanded by $100 billion (True/False).3. Now, suppose that the government switches to an income tax, which is the type of variable tax, of 20%. Because consumers retain only 80% of each additional dollar of income, disposable income is now 0.80∗Y. In this case, the economy's aggregate output demanded is $500 billion (True/False).4. Given an income tax of 20%, the expenditure multiplier is approximately 3.6 (True/False). Therefore, if the government decides to increase spending by $10 billion without raising tax rates, this would increase the economy's aggregate output demanded by approximately $36 billion (True/False).5. A $10 billion increase in government purchases will have a larger effect on output under a fixed tax of $100 billion (True/False).
Answer:
1. Aggregate output demanded is $500 billion. True.
Aggregate Demand (Y) = C + G + I
Y = 40+0.9∗DI + 80 + 20
Y = 40 + 0.9 ∗ (Y−100) + 80 + 20
Y = 50 + 0.9Y
0.1Y = 50
Y = $500 billion
2. Suppose the government decides to increase spending by $10 billion without raising taxes. Because the expenditure multiplier is 10. True.
Expenditure Multiplier = 1 / ( 1 - Marginal Propensity to Consume)
Marginal Propensity to Consume = 0.9 as per the Consumption function.
= 1/ ( 1 - 0.9)
= 10
2. b. this will increase the economy's aggregate output demanded by $100 billion. True.
Change in Aggregate output = Increase in government expenditure * expenditure multiplier
= 10 billion * 10
= $100 billion
3. ... In this case, the economy's aggregate output demanded is $500 billion . True.
Aggregate Demand (Y) = C + G + I
Y = 40+0.9∗DI + 80 + 20
Y = 40 + 0.9 ∗ (0.80∗Y) + 80 + 20
Y = 140 + 0.72Y
0.28Y = 140
Y = $500 billion
4. Given an income tax of 20%, the expenditure multiplier is approximately 3.6. True.
As a result of the new tax, the MPC will become;
= 0.9 * ( 0.80 * Y)
= 0.72Y.
Expenditure Multiplier = 1 / ( 1 - Marginal Propensity to Consume)
= 1/ ( 1 - 0.72)
= 3.57
= 3.6
4. b. Therefore, if the government decides to increase spending by $10 billion without raising tax rates, this would increase the economy's aggregate output demanded by approximately $36 billion. True.
Change in Aggregate output = Increase in government expenditure * expenditure multiplier
= 10 billion * 3.6
= $36 billion
5. A $10 billion increase in government purchases will have a larger effect on output under a fixed tax of $100 billion. True.
When the tax was fixed, an increase in Government purchases of $10 billion resulted in an increase in Aggregate output of $100 billion. When the Government switched to income taxes however, a $10 billion increase in Government spending led to a significantly lesser increase in Aggregate output of $36 billion.
Conversion costs include ________. A. direct labor and manufacturing overhead costs B. direct material and direct labor costs C. product and period costs D. direct material, direct labor, and manufacturing overhead costs
Answer:
A. direct labor and manufacturing overhead costs.
Explanation:
In Financial accounting, conversion costs comprises of all the costs associated with the conversion of raw materials into finished goods or products. These costs are usually calculated by the addition of direct labor and manufacturing overhead.
Hence, conversion costs include direct labor and manufacturing overhead costs.
The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour Suppose the utilization is 70 percent of effective capacity. What is the actual output of the process?
Answer:
The actual output of the process is 140 per hour
Explanation:
The Bottleneck step is the one which assemble minimum number of chips per hour . Step 3 produces minimum number of chips (200 chips per hour). Therefore step 3 is the bottleneck step.
Since the steps are interlinked in sequence, the capacity of the process will be determined by the capacity of the bottleneck process. Therefore, effective capacity of the process = 200 chips per hour
Since utilization is 70% of effective capacity , the actual output of the process = Utilization x Effective Capacity
= 0.7 x 200
= 140 per hour
Thus, the actual output of the process is 140 per hour
A document you are working on is ready for declassification. You have checked with the OCA responsible and the declassification date has not changed. How will the banner markings on the document change?
Answer:
All banner markings will be lined through. The document will be marked DECLASSIFIED at top and bottom
Explanation:
In the declassification process documents that used to be classified as secret stop being so and are made available to the public. In this process, the banner markings on the document will be lined through and the document itself will be marked as DECLASSIFIED at the top and bottom of the page. Thus stating that it was previously a CLASSIFIED document that is freely available.
Explain the concept of an opportunity cost with an appropriate example
Answer:
Explanation:
Opportunity cost is an economics tool that is useful in the process of making a choice of goods and services in order to ensure that scarce resources are used efficiently.
The opportunity cost of a product or service is the name given to an income that could be earned when such product or service is put to an alternative use.
It can also be described as the cost of the alternative forgone to achieve a particular product or service
For an example , if a student decides to give up on watching a movie to study for his exam , the opportunity cost of the exam is the cost and pleasure related to the movie
All else equal, which of the following is most likely to increase a company's retained earnings breakpoint? a. An increase in the company's dividend payout ratio b. both factors will lead to an increase in the retained earnings breakpoint. c. A decrease in the fraction of equity used in the company's target capital structure
Answer: decrease in the fraction of equity used in the company's target capital structure
Explanation:
Retained earnings is the part of the net income that is left over for the business when the business has already paid out dividends to the shareholders. The retained earnings can be put back into the business.
A decrease in the fraction of equity used in the company's target capital structure will lead to an increase a company's retained earnings breakpoint.
The reserve requirement is 10%. Suppose that the Fed $ worth of U.S. government securities a bond dealer, electronically the dealer's deposit account at Reliable Bank. Which of the following correctly describes the immediate effect of this transaction? A. The total reserves of Reliable Bank by $. B. The excess reserves of Reliable Bank by $. C. The required reserves of Reliable Bank by $. D. Reliable Bank
Answer:
D. The money supply decreases by $150,000.
Explanation:
Note: This question is not complete as some figures are omitted. The full question is therefore presented first before answering the question as follows:
The reserve requirement is 10%.
Suppose that the Fed sells $150,000 worth of U.S. government securities from a bond dealer, electronically debiting the dealer's deposit account at Reliable Bank.
Which of the following correctly describes the immediate effect of this transaction on the money supply?
A. The money supply decreases by $1,500,000
B. The money supply decreases by $135,000.
C. There is no change in the money supply.
D. The money supply decreases by $150,000.
E. None of the above.
The explanation to the answer is now provided as follows:
This is an example of Open market operations (OMO).
Open market operations (OMO) is a monetary policy strategy in which the central bank such as the Federal Reserve sells or purchases government securities in order to implement a particular monetary policy.
When the central bank sells government securities on the open market, it aims to reduce the money supply by the worth of the securities. This is called a contractionary monetary policy.
On the other hand, when the central bank purchases government securities on the open market, it aims to increase the money supply by the worh of the government securities. This is called an expansionary monetary policy.
From the question, the sale of $150,000 worth of U.S. government securities from a bond dealer is a contractionary monetary policy and it will reduce the money supply by exactly $150,000.
Therefore, the correct option is D. The money supply decreases by $150,000.
Seth is a manager at Click Systems. He leads a team of 20 employees, and Amanda is his least preferred coworker because he finds it difficult to cooperate with her. During an employee feedback session, Seth informs his boss that Amanda is unresponsive, insincere, lazy, and unfriendly. In this scenario, Seth has a _____ leadership style.
Answer:
task-oriented
Explanation:
Since in the question it is mentioned that the Seth who is a manager handling a team of 20 employees out of which Amanda is least coworker as it is very difficult to cooperate with her also she is insincere, lazy, etc
So, Seth has a task oriented leadership style as he leading a team of 20 employees whom he motivates, guides for accomplishing a task
Ben works at a small advertising agency as a graphic artist. Ben enjoys his job because the company allows employees to have flexible schedules and to telecommute when necessary. Which of the following best describes this type of employee compensation? A) indirect financial compensation B) direct financial compensation C) nonfinancial compensation D) required compensation
Answer:
C) nonfinancial compensation.
Explanation:
In this scenario, Ben works at a small advertising agency as a graphic artist. Ben enjoys his job because the company allows employees to have flexible schedules and to telecommute when necessary. A non-financial compensation best describes this type of employee compensation because employees aren't given any compensation in cash.
A non-financial compensation can be defined as the satisfaction or benefits an employee derives from working in a particular organization without any form of monetary incentive. It has to do solely with non-monetary values such as flexibility, job environment, relaxation spots, food, fitness facilities etc.
