After Graduating with a Double Major in Engineering and Business

question 131

Multiple Choice

After graduating with a double major in engineering and business, Scott accepted a job with a large telecommunications company with the understanding that his first two years on the job would be spent internationally - Argentina and Korea. The company was willing to offer a compensation package that would compensate him for the sacrifice of leaving his family and living abroad, and if things went well, they anticipated that he would receive a promotion when coming back to the states. According to the Reaching Beyond our Borders box, titled, "Working Worldwide", which of the following is the firm least likely to consider when planning Scott's compensation plan?

• A)will not consider this offer because it is not worth $15k less in salary, and it would impact her ability for future offers.
• B)may consider this offer because it is not just about compensation, it is about the job content.
• C)will not consider this offer because it lacks soft benefits.
• D)may consider this offer because accepting fringe benefits instead of a higher salary may positively impact her tax consequences.

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Definitions:

Net Income

The company's net profit, calculated by subtracting all costs and taxes from its overall revenue.

Net Loss

The amount by which total expenses exceed total revenues for a specific period, indicating a reduction in equity.

Accruals

Accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash transaction takes place.

Unrecorded Expense

An expense that has been incurred but not yet documented or reported in the accounting records.