Ann Is the Sole Owner of a Computer Store and Established

question 60

Multiple Choice

Ann is the sole owner of a computer store and established a simplified employee pension plan (SEP) for herself and her two full-time employees. Her net self-employment income for the year is $70,000. The maximum amount she can contribute to her SEP is

• A)$9,130
• B)$10,500
• C)$14,000
• D)$17,500
• E)$49,000

---

Definitions:

Shareholders' Value

The value delivered to shareholders because of management's ability to grow earnings, dividends, and share price.

Ownership

The legal right to possess, use, control, and dispose of an asset, property, or a share in a company.

Green Shoe Provisions

An over-allotment option in an IPO, allowing underwriters to buy up to an additional 15% of company shares at the offering price to manage excess demand.

Lead Underwriter

The primary bank or financial institution responsible for managing the issuance of new securities.