A Publically Traded Canadian Corporation Provides Employees with One Year

question 43

Multiple Choice

A publically traded Canadian corporation provides employees with one year of continuous service and the opportunity to place 6% of their pre-tax income in a plan that may be invested in the company's stock. Furthermore, the company matches the shares by 50% up to a limit of 4% of the employees' pre-tax income. From the perspective of the employee, what are the potential drawbacks of participating in this program?

• A) Administrative costs associated with these plans are normally very high.
• B) It is extremely difficult for an employee to determine the performance of their stock.
• C) They pose too much of a tax burden.
• D) If the company does poorly, your job and savings may be at risk.

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Definitions:

Cognitive Therapist

A mental health professional specializing in the treatment of psychological disorders by addressing dysfunctional thoughts and beliefs to change behavior and emotions.

Family Systems Therapy

A therapeutic approach focusing on understanding and treating individuals within the context of their family units, recognizing and addressing patterns and relationships that impact mental health.

Humanistic Therapy

A type of psychotherapy that emphasizes personal growth and self-fulfillment through self-exploration and self-acceptance.

Anxiety

An emotion characterized by feelings of tension, worried thoughts, and physical changes like increased blood pressure, relating to anticipation of a feared event or situation.