Which of the following is NOT considered an incentive under employee compensation structures?
A) profit-sharing plans
B) bonuses
C) stock options
D) commissions
E) golden parachutes
Answer: E
Explanation: E) Golden parachutes are considered a benefit or nonsalary compensation. These are lucrative severance payments guaranteed to key executives under prior agreement.
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Jennings Co. has total assets of $457.0 million. Its total liabilities are $126.5 million. Its equity is $330.5 million. Calculate the debt ratio. (Round your answer to 1 decimal place.)
A. 38.3%. B. 16.1%. C. 14.4%. D. 35.3%. E. 27.7%.
The practice of carefully timing the recognition of revenues and expenses to even out the amount of reported earnings from one year to the next is called
a. revenue recognition. b. income smoothing. c. restructuring. d. accrual-basis accounting.
A highly useful way to understand organization change more effectively is ______.
A. consider whether the change is episodic or continuous B. consider whether the change needs to be episodic or continuous C. conducting 360-degree feedback surveys D. A and B
If an investor is reporting in compliance with the International Financial Reporting Standards and has an investment with significant influence over the investee, what are the reporting requirements for the investor if the investment is in shares which are actively traded on an exchange?
A) The investment must be reported at fair value through profit and loss. B) The investment must be reported using the equity method; disclosure of the fair value of the investment is at the discretion of the investor. C) The investment must be reported using the equity method with the fair value disclosed in the notes to the financial statements. D) The investment must be reported at fair value through other comprehensive income.