When Airborne Aircraft acquired Bell Airplanes, the executives of the two companies identified key employees they needed for the combined companies' success. One of them was Patrick, the vice president of engineering. The executives offered Patrick a one-time bonus of $25,000 if he stayed with the company for 12 months following the acquisition. In this scenario, Patrick's $25,000 represents
A) a commission.
B) a retention bonus.
C) stock options.
D) merit pay.
E) a differential piece rate.

Question

Quizplus · Accepted Answer

Patrick's $25,000 represents a retention bonus, which is a type of bonus offered to key employees to encourage them to stay with the company during a time of transition or change.

When Airborne Aircraft Acquired Bell Airplanes, the Executives of the Two