Which of the Following Is Not a Benefit of Nonqualified

question 106

Multiple Choice

Which of the following is not a benefit of nonqualified deferred compensation plans?

• A) Nonqualified plans may discriminate in favor of highly compensated executives.
• B) There is no limit on the amount of nonqualified deferred compensation that can be provided to an employee.
• C) Nonqualified deferred compensation plans are less risky for participating employees than qualified retirement plans.
• D) Employers do not have to expend cash to fund a nonqualified plan.

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Definitions:

Interview Order

The sequence in which candidates are interviewed, which can potentially influence the perception and evaluation of each candidate by the interviewer.

Mere Exposure Effect

The mental effect where individuals start favoring items simply because they have become acquainted with them.

Balance Theory

A psychological theory suggesting that individuals strive for consistency and balance in their relationships and beliefs within a triad of entities (P-O-X model).

Attitudes

A learned tendency to evaluate things in a certain way, which can include evaluations of people, issues, objects, or events.