Video Games Unlimited Inc

question 31

True/False

Video Games Unlimited Inc.allows its game designers to use, without charge, company cars for their personal vacations.The employer's motive for providing the cars is to ensure that these valuable assets (i.e., the employees) of the business are retained.Because this is a reasonable business purpose, the employees will recognize no income from their use of the cars.

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Definitions:

Term Deposit

A fixed-term investment held at a financial institution that pays interest at a specified rate and matures on a specific date.

Scotiabank

A Canadian multinational banking and financial services company, one of the largest in Canada in terms of deposits and market capitalization.

Annual Rate

The interest rate for a period of one year, often used for comparing the annual interest of financial products.

Discount Rate

The interest rate charged by central banks on loans to commercial banks or the rate used in discounted cash flow analysis to determine present value.