Which of the Following Is an Example of the Timing

question 43

Multiple Choice

Which of the following is an example of the timing strategy?

• A) A corporation paying its shareholders a $20,000 dividend.
• B) A parent employing her child in the family business.
• C) A taxpayer gifting stock to his children.
• D) A cash-basis business delaying billing its customers until after year end.
• E) None of the choices are correct.

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Definitions:

Executive Base Pay

The core salary paid to an executive, not including bonuses, incentives, and other forms of compensation.

Options Granted

Refers to the provision of stock options to employees as a form of compensation, giving them the right to purchase company stock at a future date at a predetermined price.

Strategic Compensation

A method of designing and implementing compensation packages that aim to align employee rewards with business objectives.

Organizational Goals

Refers to the objectives or targets that a company aims to achieve, guiding its strategic planning and decision-making processes.