What is the term for a substantial payment given to a senior employee who is compelled to retire or dismissed due to a takeover or comparable event?

Basic of Economics MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Basic of Economicseconomics-mcqs › basic-of-economics
Published
26 May 2019
Last updated
28 May 2026

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Explanation

The correct term is 'Golden handshake,' which refers to a large sum paid to a senior employee who is forced to leave the company, often due to a takeover or restructuring. Other options do not accurately describe this specific type of payment.

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