This Is Anne's Year! She Finally Broke Through the Glass

question 120

Multiple Choice

This is Anne's year! She finally broke through the glass ceiling - meaning she has reached an executive level position with her company,with a salary upwards of $200,000.Recently a competitor firm has approached her offering her $15,000 less in salary,but the job would come with an upgraded car,memberships in two country clubs of her choice,an additional two weeks paid vacation with use of the company's villa in Jamaica,and paid financial counseling.With respect to compensation,Anne:

• A)will not consider this offer because it is not worth $15k less in salary,and it would impact her ability for future offers.
• B)may consider this offer because it is not just about compensation,it is about the job content.
• C)will not consider this offer because it lacks soft benefits.
• D)may consider this offer because accepting fringe benefits instead of a higher salary may positively impact her tax consequences.

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Definitions:

Debt Covenants

Agreements or conditions included in debt contracts that the borrower must adhere to, designed to protect the lender by restricting the borrower’s activities and enhancing the likelihood of debt repayment.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Debt Securities

Financial instruments representing money borrowed by an issuer to be repaid with interest, such as bonds, notes, and bills.

Financial Performance

The measure of a firm's profitability, liquidity, and solvency, reflecting its overall health and efficiency at generating profits.