Highly Compensated Executives Sometimes Prefer Fringe Benefits Such as Club

question 384

True/False

Highly compensated executives sometimes prefer fringe benefits such as club memberships, company cars, and more vacation time, as opposed to higher salaries because most often these benefits are not taxable income.

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Definitions:

Actively Traded

Securities or assets that are frequently bought and sold, often characterized by high trading volumes.

Agricultural Futures

Futures contracts that are based on the future price of agricultural products such as wheat, corn, soybeans, and others, used by farmers and investors to hedge risks or speculate.

Actively Traded

Refers to securities or assets that are frequently bought and sold in financial markets, often indicated by high daily volume.

Futures Contract

A legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.