Which of the following statements is true of a discretionary system of determining bonuses?
A) The federal and state governments decide the bonuses.
B) All the shareholders of the company decide the bonuses.
C) The labor unions and employees decide the bonuses.
D) The CEO and the board of directors decide the bonuses.

Question

Quizplus · Accepted Answer

A discretionary system of determining bonuses means that the decision-making authority rests with the CEO and the board of directors. They have the discretion to determine who receives a bonus and how much that bonus will be. The federal and state governments, shareholders, labor unions, and employees are not typically involved in this process.

Which of the Following Statements Is True of a Discretionary