Which of the Following Is Not Correct Regarding Executive Compensation

question 96

Multiple Choice

Which of the following is not correct regarding executive compensation at tax-exempt organizations?

• A) If the IRs deems wages and benefits to be in excess of reasonable amounts, the IRs may impose sanctions on the individual receiving the benefits.
• B) If the IRs deems wages and benefits to be in excess of reasonable amounts, the IRs may impose sanctions on the managers who approved the wages and benefits.
• C) If the compensation is found to be unreasonable, the executive is required to pay back the amount of compensation deemed excessive plus a 10% penalty.
• D) Benefits include salaries, deferred compensation, insurance, loans and medical benefits.

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Definitions:

Diamond Cutters

Skilled professionals who cut and shape diamonds to enhance their value and beauty.

Supply

The total amount of a product or service available for purchase at any given price, determined by factors like production capacity and market demand.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a specific price level, holding all other factors constant.

Quantity Supplied

The amount of a good or service that producers are willing and able to offer for sale at a given price during a specified period.