Rony is the managing director of a fabric manufacturing company.In order to limit the profit of the company and, therefore, the taxes on the business, the management pays a hefty amount to Rony as year-end bonuses.The company also pays for his family vacations and foreign trips.The benefits enjoyed by Rony are called ________.

Question

Quizplus · Accepted Answer

The benefits enjoyed by Rony are known as perquisites or perks. These are additional benefits given to employees on top of their regular salary or wages, such as company-paid vacations, bonuses, and other incentives. The management is using these perks to limit the company's profits and reduce taxes, which is not ethical or legal.

Rony Is the Managing Director of a Fabric Manufacturing Company