Nontax Issues to Consider When Evaluating Current Salary Versus Deferred

question 38

Multiple Choice

Nontax issues to consider when evaluating current salary versus deferred compensation include

• A)the employee may need the cash now.
• B)deferred compensation carries some risk.
• C)deferred compensation may,depending on the contract,lock the employee into continued employment.
• D)All of the above are issues to be considered.

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Definitions:

Rule of Law

The principle that all members of a society, including those in government, are equally subject to publicly disclosed legal codes and processes.

Infrastructure

The basic physical and organizational infrastructure and services such as buildings, roads, and power facilities required for the functioning of a society or business.

Human Capital

The collective skills, knowledge, and other intangible assets of individuals that can be used to create economic value.

Surplus Labor

This term refers to the portion of the labor force which is not currently being employed to its full potential, often leading to unemployment or underemployment in an economy.