Of the Three Basic Forms of Management Compensation (Salary, Bonus

question 67

Multiple Choice

Of the three basic forms of management compensation (salary, bonus, benefits) , the fastest growing part of total compensation is:

• A) Salary.
• B) Bonus.
• C) Benefits.
• D) Salary and bonus.

Master the concept and computation of earnings per share (EPS) and its importance in valuation.

Develop the ability to calculate and interpret the dividend yield ratio.

Understand and calculate the price/earnings (P/E) ratio and its application in investment decisions.

Grasp the significance of and compute the return on assets (ROA) for company performance assessment.

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Definitions:

Chapter 13

A section of the U.S. Bankruptcy Code allowing individuals with a steady income to reorganize their debts and pay them off over time.

Debts

Money, goods, or services owed by one party to another under the terms of a contract or agreement.

Garnishments

A legal process whereby a creditor can collect what a debtor owes by requiring a third party to turn over the debtor’s property or wages.

Creditors

Individuals or institutions that lend money or extend credit and are owed repayment by debtors.