Question

Which of the following statements is true regarding termination benefits?

a. Expenses related to voluntary terminations may be avoided by hiring replacement employees within 60 days of the terminations.
b. Voluntary terminations relate to layoffs or reductions in workforce.
c. Voluntary termination benefits occur when employers provide an incentive to hasten an employee's voluntary termination of employment, such as a one-time payout.
d. Employers incur expenses related to voluntary terminations but not to involuntary terminations.

Answer 1

The correct statement regarding termination benefits is that c) voluntary termination benefits occur when employers provide an incentive to hasten an employee's voluntary termination of employment.

Step-by-step explanation:

The correct statement regarding termination benefits is: c. Voluntary termination benefits occur when employers provide an incentive to hasten an employee's voluntary termination of employment, such as a one-time payout.

In voluntary termination benefits, employers offer incentives to encourage employees to voluntarily leave their jobs, such as a lump sum payment or additional benefits. This is different from involuntary terminations, which occur when employers terminate employees without their consent. Voluntary terminations do not necessarily relate to layoffs or reductions in the workforce, as stated in statement b. Expenses related to voluntary terminations, as well as involuntary terminations, are incurred by employers, making statement d incorrect.