Cindy 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 because she had violated a rule for
A) lump-sum salary increase.
B) profit-sharing.
C) commission.
D) employee benefit.
E) wage compensation.

Question

Quizplus · Accepted Answer

The situation describes a lump-sum salary increase, which is a one-time payment given with conditions, such as staying with the company for a specified period. Cindy violated this condition by leaving early, so she had to return the increase.

Cindy Earned a 10 Percent Increase in Her Salary and Received