Which of the Following Is a Fringe Benefit Not Included

question 3

Multiple Choice

Which of the following is a fringe benefit not included as compensation?

• A)Discounts on services,limited to 30% of the price charged to nonemployee customers.
• B)Educational assistance limited to $7,250.
• C)Group-term life insurance up to $50,000 of coverage.
• D)Overtime meal money.

Grasp the concept and legal significance of the corporate veil and circumstances under which it may be pierced.

Understand the distinctions between par-value and no-par-value shares and their implications on market value.

Differentiate the roles and rights of shareholders and debenture holders in a corporation.

Describe the restrictions on share transferability in closely held corporations.

---

Definitions:

Capital Budgeting

The process through which a company evaluates and decides on the investments in projects and acquisitions that will provide long-term benefits.

Forecasted Cash Flows

Projections of how much cash a company will generate and use over a certain period, used for planning and investment assessment.

Capital Budgeting Investment Rule

Guidelines or criteria used by businesses to evaluate and select among potential investments or projects based on their expected returns or value.

Increase in Cost

A financial term indicating a rise in expenses or prices, affecting the overall cost structure of a business or the price level in an economy.