Which of the following statements is TRUE of lump-sum payments?
A) It is a pay incentive system in which employees receive a share of the employer's profits on a monthly basis as their payment.
B) It is a wage system that pays newly hired workers less than current employees performing the same or similar jobs.
C) It is a method of providing a general wage increase as a onetime payment rather than adding the increase to the hourly or annual salary of the employee.
D) It is a method of providing a general wage increase in which a lower wage adjustment is provided in the first year with higher increases in later years.

Question

Quizplus · Accepted Answer

Lump-sum payments refer to a method of providing a general wage increase as a one-time payment rather than adding the increase to the hourly or annual salary of the employee. This means that the employee receives a single lump-sum amount as their raise or bonus. Therefore, option C is correct while options A, B, and D are incorrect.

Which of the Following Statements Is TRUE of Lump-Sum Payments