Orion Is a Business Software Firm Based in Atlanta That

question 49

Multiple Choice

Orion is a business software firm based in Atlanta that employs over 400 people.Orion has traditionally provided legislatively required benefits for its employees including Social Security,workers' compensation,and unemployment insurance.In addition,Orion offers employees health and dental insurance.Orion employees work Monday through Friday on a 9 to 5 schedule.Orion's top executives are considering the idea of adding a flexible benefits plan and implementing a flexible work schedule.
-Which of the following,if true,best supports the argument that Orion should offer its employees a cafeteria plan?

• A) Orion lacks the resources to join a low-cost health insurance plan, so the firm belongs to a pool with other businesses.
• B) Some Orion employees have indicated that they would like vision insurance, while others have no interest in dental insurance.
• C) In the past, Orion's rates for life, health, and dental insurance have been reasonable, and the firm has managed to keep deductibles low.
• D) Orion offers its employees a PPO health insurance plan, but employees have expressed interest in an HMO plan.
• E) Orion outsources its employee benefits program, so employees go through the plan's administrator when filing claims.

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Definitions:

Income Taxes Payable

The amount of income tax a company owes to the government but has not yet paid.

Book Income Before Income Tax

The income reported in financial statements before the effect of income taxes, reflecting the financial performance from core operation and non-operational activities.

Tax Depreciation

The method by which a business writes off the cost of a tangible asset over its useful life for tax purposes.

Book Depreciation

The allocation of the cost of a tangible asset over its useful life for accounting and tax purposes.