Which of the Following Factors Would Not Be Considered in Determining

question 92

Multiple Choice

Which of the following factors would not be considered in determining if compensation paid to a shareholder/employee is reasonable?

• A) The individual's duties and responsibilities.
• B) What individuals performing in comparable capacities at other companies are paid.
• C) Whether the corporation has a formal compensation policy.
• D) The individual's marginal income tax rate.

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Definitions:

Excludes

Indicates items or conditions that are not covered or included in a particular group or list.

ICD-9

International Classification of Diseases, 9th Revision, a system used for coding and classifying mortality data from death certificates.

NEC

Short for Necrotizing Enterocolitis, a serious gastrointestinal disease affecting mostly premature infants, involving inflammation and tissue death in the intestines.

Not Elsewhere Classified

A term used in various categorization systems to label items that do not fit into the existing categories.