A Form of Compensation Whereby the Employee Receives a Predetermined

question 169

Multiple Choice

A form of compensation whereby the employee receives a predetermined amount of benefit dollars to spend on a benefits package he or she has selected to meet individual needs is called a(n)

• A) flexible compensation plan.
• B) employee benefits plan.
• C) Social Security account.
• D) flexible benefits plan.
• E) optional benefits package.

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Definitions:

Takeover Bid

An offer made to acquire some or all of shareholders' shares in a corporation with the aim of gaining control of the company.

Cumulative Dividend

A feature of preferred stock that entitles shareholders to receive dividends that were omitted in the past.

Par Value

The nominal or face value of a share of stock or a bond as stated by the issuer.

Stated Capital

The portion of a corporation's share capital that has been formally allocated for issuance and recorded in the company's financial statements.