This Section of the IRC Permits an Employer to Offer

question 29

Multiple Choice

This Section of the IRC permits an employer to offer employees the choice between taxable income or to allocate some of their income to purchase qualified benefits through a cafeteria plan.(Cafeteria Plans under Section 125)

• A)125
• B)152
• C)127
• D)172

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Definitions:

Typical Consolidation

The process of combining multiple financial statements from different entities into one aggregate financial statement.

Net Present Value

A calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate, to determine its profitability.

Acquisition

The process of obtaining control of another corporation, purchasing a significant amount of its stock, or buying its assets.

Circular Bid

Corporate takeover bid communicated to the shareholders by direct mail.