Identify a True Statement About Employee Benefits

question 55

Multiple Choice

Identify a true statement about employee benefits.

• A) In both the United States and Europe, the awarding of stock options is linked to specific performance goals.
• B) Pension plans are more widespread in the United States and Japan than in Western Europe.
• C) Unlike in the United States, compensation plans in other countries are less likely to include benefits.
• D) Paid vacation tends to be more generous in Western Europe than in the United States.
• E) Although stock options became a common form of incentive pay in Europe during the 1990s, American businesses did not begin to adopt them until the end of that decade.

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Definitions:

Accounts Payable

Money owed by a company to its creditors for goods and services purchased on credit.

Buying Inventory

The process of purchasing goods or materials that a company plans to sell to its customers, which is a critical component of managing supply and demand.

Equity Security

A financial instrument representing ownership interest in a company, such as stocks.

Preferred Stock

A type of stock that gives holders priority for dividend payments over common stockholders and may carry other privileges, but usually does not have voting rights.