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Difficulty:
55%
(hard)
Question Stats:
66%
(01:53)
correct 34%
(02:12)
wrong
based on 91
sessions
History
Date
Time
Result
Not Attempted Yet
At BrightTech Solutions, employees receive an annual performance-based bonus ranging from 5% to 10% of their salary. This bonus structure has been in place for 15 years and is explicitly stated in employee contracts. However, this year, the company has faced unexpected financial difficulties due to a major client canceling a long-term contract. As a result, the company’s executive board has proposed a temporary suspension of performance bonuses unless employees collectively agree to take on additional unpaid overtime to help recover lost revenue. A memo was sent to all employees outlining this proposal, stating that the decision to provide bonuses will depend entirely on employee cooperation.
If the information in the passage is true, which of the following must also be true?
(A) If employees do not agree to work additional unpaid overtime, they will not receive their performance bonuses this year.
(B) The company is legally allowed to withhold bonuses despite them being stated in employee contracts.
(C) If BrightTech Solutions had managed its finances more effectively, it would not have needed to suspend bonuses.
(D) Employees who refuse to work additional unpaid overtime will be at risk of termination.
(E) Since the performance bonus is based on individual performance, employees should still receive their bonuses regardless of the company's financial situation.
Archived Topic
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I don't fully understand why the correct answer is Option A.
The way I interpreted the passage is that only when the employees worked overtime and the company could recover the lost revenues, will the bonuses be paid. What if they worked overtime but the company still did not earn back lost revenue?Do they still get paid?
On the other hand, I think option B makes more sense. Only if there's a provision whereby the company can withhold the bonus payout despite it being mentioned in the contracts can the board issue such an advisory.
Does anyone else agree with my understanding of the question? Or am I missing something?
We don't know if it is legal or not, based on the passage. We don't know the details of the employee contracts. We do know with 100% certainty that if an employee doesn't work overtime they will also not be paid a bonus.
Hoodi_baba
I don't fully understand why the correct answer is Option A.
The way I interpreted the passage is that only when the employees worked overtime and the company could recover the lost revenues, will the bonuses be paid. What if they worked overtime but the company still did not earn back lost revenue?Do they still get paid?
On the other hand, I think option B makes more sense. Only if there's a provision whereby the company can withhold the bonus payout despite it being mentioned in the contracts can the board issue such an advisory.
Does anyone else agree with my understanding of the question? Or am I missing something?
(A) If employees do not agree to work additional unpaid overtime, they will not receive their performance bonuses this year. (Answer: Since this follows from the premise)
(B) The company is legally allowed to withhold bonuses despite them being stated in employee contracts. (Wrong: There is no mention of legal aspect in the passage anywhere and moreover this will fit an assumption more than a conclusion)
(C) If BrightTech Solutions had managed its finances more effectively, it would not have needed to suspend bonuses. (Out of scope)
(D) Employees who refuse to work additional unpaid overtime will be at risk of termination. (Out of scope)
(E) Since the performance bonus is based on individual performance, employees should still receive their bonuses regardless of the company's financial situation. (Out of scope)
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.