Participating in an Employer-Sponsored Nonqualified Deferred Compensation Plan Is Potentially

question 32

True/False

Participating in an employer-sponsored nonqualified deferred compensation plan is potentially risky because employers are not required to fund nonqualified plans. If the employer is not able to pay the employee when the payment is due, the employee usually becomes an unsecured creditor of the employer.

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Definitions:

Political Process

The methods and activities through which political decisions and policies are formulated and implemented.

Organizational Objectives

The goals or targets that an organization aims to achieve, which guide its operations and strategic direction.

Changing Environment

Encompasses the dynamic and evolving external and internal factors that affect an organization's operations, including technological advances, market trends, and social changes.

Collective Action

The pursuit of a goal or set of goals by people working together, often in the context of social or political actions, exemplified by movements, protests, or other group efforts.