Kari Scott Was Trying to Make a Decision Between Two

question 9

Multiple Choice

Kari Scott was trying to make a decision between two job offers.The jobs and the type of organization in which the jobs were located were quite similar but the content and distribution of the total compensation package held significant differences.In trying to make her decision,she made the following comparison list:

$\begin{array}{c}\begin{array}{lll}\\ \text {Base Salary:}\\ \text {Vacation:}\\ \text {Life Insurance:}\\\\ \text {Medical Insurance}\\ \text {Defined Contribution}\\ \text {Pension Plan:}\\ \text {gross}\\\\\\\\\\ \text {Paid Sick Leave:}\\\\\end{array}\begin{array}{lll}\text {Job A}\\\text { \$ 36,000 / year}\\\text {3 weeks/year to start}\\\text {One times annual salary}\\\text { 0.333 \% per \$ 1000 coverage}\\\text {Similar to Job B}\\\\\text {Employee contributes 5 \% of gross}\\\\\text {annual salary; Employer matches 1:1}\\\text {matches 50 \% of employee contribution}\\\text { contribution}\\\\\text {Use up to 10 sick days per year,}\\ \text {unused days paid out at end of year}\end{array}\begin{array}{lll}\text {Job B}\\\text { \$ 45,000 / year}\\\text {2 weeks/year to start}\\\text {Double annual salary}\\\text { 0.333 \% per \$ 1000 coverage}\\\text {Similar to Job A}\\\\\text {Employee contributes 5 \% of}\\\\\text {annual salary, Employer}\\\text {of employee}\\\\\\\text {Use up to 6 sick days per year,}\\ \text {unused days lost at end of year}\end{array}\end{array}$

-The gross (before taxes) value of the life insurance premium paid by the employer is __________ for Job A and ________ for Job B this year.

• A)$120;$150
• B)$120;$180
• C)$120;$300
• D)$180;$300
• E)$180;$320

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Definitions:

Insurance Policy

A contract between an individual or entity and an insurance company, detailing the terms for the payment of claims by the insurer to the insured.

Skid Mark

A mark that a tire leaves on the road when it is in a locked mode, that is, when the tire is not turning, but the car is continuing to move.

Miles Per Hour

A unit of speed expressing the number of miles traveled in one hour, commonly used to measure the speed of vehicles in the United States and the United Kingdom.

Feet And Inches

Units of measurement used primarily in the United States for length, where 1 foot equals 12 inches.