Sally earned a 10 percent increase in her salary and received the entire increase at the beginning of the year, with the stipulation that she would not leave the company in that year.Five months later, she quit her job and went to work for a competitor.She had to return the 10 percent payment she had received.Sally had opted for _____.
A) lump-sum salary increase
B) profit sharing
C) commission
D) employee benefit
E) wage compensation

Question

Quizplus · Accepted Answer

Sally opted for a lump-sum salary increase, which means she received the entire 10 percent increase at the beginning of the year. If she had chosen a different type of compensation, such as profit sharing or commission, she would not have received the entire amount at once and there would have been no need for her to return the money when she quit.

Sally Earned a 10 Percent Increase in Her Salary and Received