Which of the Following Is Most Important When Planning Compensation

question 75

Multiple Choice

Which of the following is most important when planning compensation for expatriates?

• A) Providing a disposable income equal to that of repatriated managers
• B) Offering stock options for the successful completion of the assignment
• C) Basing salary and overtime rates on local pay and living standards
• D) Granting cost-of-living adjustments to allow for price differences

Identify different types of special-purpose bonds, including catastrophe bonds and contingent bonds.

Understand why debt securities are often referred to as fixed-income securities.

Understand the implications of subordination clauses and collateral in the safety and valuation of bonds.

Calculate the intrinsic value of a bond given its yield to maturity and coupon rate.

---

Definitions:

Receivable

Amounts owed to a company by its customers or debtors for goods or services delivered that have not yet been paid.

Pooling of Interests Transaction

A method used in accounting for business mergers in which the assets and liabilities of the merging companies are combined using their book values.

Book Value

The net value of a company's assets minus its liabilities, representing the equity value of the company from an accounting perspective.

Fair Value

The price at which an asset could be bought or sold or a liability settled, between knowledgeable, willing parties in an arm's length transaction.