Match Each Statement with the Correct Term Below

question 96

Multiple Choice

Match each statement with the correct term below.
-Incentive stock option

• A)A separate, parallel tax system designed to ensure a taxpayer pays some tax.
• B)A compensation tool that is based on potential price increases of the company's stock.
• C)An individual trust account maintained for the exclusive benefit of an individual or beneficiary.
• D)A type of defined contribution pension plan in which the company and the employee contribute a fixed percentage of the employee's salary to the plan.
• E)A pension plan in which the benefits are based on the number of years an employee has worked for a company and on the employee's annual salary.
• F)A pension plan whose benefits are determined by the amount of contributions the employee and the company contribute to the plan and the earnings of the plan.

Understand the concept and mechanisms of a negative income tax.

Recognize how negative income tax affects families with different incomes.

Identify the effects and implications of minimum wage laws.

Distinguish between different types of welfare programs and their characteristics.

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Definitions:

Crime

An act prohibited by the state; a public wrong.

Exclusive Dealing

A contractual agreement where one party agrees to buy goods exclusively from another, often restricting competition.

Distributor

A person or company that is responsible for supplying goods to retailers or directly to customers.

Manufacturer

A person or company that makes goods for sale, especially on a large scale.