Jack Has to Decide Between Two Jobs That Provide Equal

question 48

Multiple Choice

Jack has to decide between two jobs that provide equal pay.He decides to compare the healthcare benefits provided by both jobs to arrive at a decision.He wants to choose the job that offers him a flexible spending account over the job that offers him managed care.Which of the following,if true,strengthens his decision?

• A) With managed care, the insurer makes decisions about health care, which helps avoid unnecessary procedures.
• B) Money in flexible spending accounts is not taxed, so employees get more take-home pay.
• C) In flexible spending accounts, employees will get back the money they do not spend.
• D) Flexible spending account is not helpful if employees have unpredictable health care expenses.
• E) To avoid taxation of the money in a flexible spending account, the money must meet IRS requirements.

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Definitions:

Holder in Due Course

A term referring to a party who has acquired a negotiable instrument in good faith and for value, and thus has certain protections.

Marketability

The ease with which an asset or security can be sold or bought in the market without affecting its price.

Commercial Utility

The usefulness or value that a product or service provides in a commercial setting, often measured by its ability to meet the needs of a business or consumer market.

Enforceable

A term used to describe a legal agreement or obligation that can be upheld or compelled by law.