Although Significant Client Business Risks Affecting Payroll Are Unlikely for Most

question 9

Multiple Choice

Although significant client business risks affecting payroll are unlikely for most companies, an area that would have the most business risk would be

• A) payment of hourly employees.
• B) payment of salaried employees.
• C) payments to employees for stock options and bonus plans.
• D) payments to employees who have direct deposit of their payroll checks.

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Definitions:

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.

Sales

The activities involved in selling products or services in return for money or other compensation.

Residual Income

The amount of income that an entity has after all personal debts and expenses have been paid, often used in personal finance, or an approach to measure a department's or investment's profitability after charging cost of capital.

Invested Capital

The cumulative sum of funds invested by stockholders and creditors into a firm for long-term purposes.