BUSFIN 4312 Quiz 2 Questions and Answers with Verified
Solutions | Latest Update
QUESTION
Satisfying nondiscrimination rules permits plan participants to take tax deductions for qualified
benefits.
Answer:
True
QUESTION
Employers use case management companies to ensure that all of their employees' medical needs
are being met adequately.
Answer:
False
QUESTION
The benefits plan year is the 12-month period during which time benefit elections remain in
effect, which is restricted to a company's fiscal year.
Answer:
False
QUESTION
Seasonal work is a noneconomic reason for working part-time.
Answer:
False
QUESTION
There are three legal tests to determine a worker's status: the common-law test, the economic
realities test, and a hybrid test that incorporates various elements of both tests
Answer:
True
QUESTION
Lease companies are liable for protecting their leased employees under federal and state laws, but
complicating the issue is that the client company may also be legally responsible.
Answer:
True
, QUESTION
Corporate-owned life insurance can be used by employers to recover the costs of nonqualified
deferred compensation.
Answer:
True
QUESTION
Trust funds and insurance contracts do not secure an employer's promise to make future
payments.
Answer:
False
QUESTION
Top hat plans are unfunded plans.
Answer:
True
QUESTION
Nonstatutory stock options entitle executives to purchase their companies' stock in the future at a
predetermined price
Answer:
False
QUESTION
This cafeteria plan allows employees to exclude allocated income from federal income tax to pay
for the benefits.
Answer:
Pretax salary reduction plans
QUESTION
Which of following statements is true of outsourcing benefits functions?
Answer:
Outsourcing refers to an employer transferring responsibility to a third-party provider to manage
one or more benefits.
Solutions | Latest Update
QUESTION
Satisfying nondiscrimination rules permits plan participants to take tax deductions for qualified
benefits.
Answer:
True
QUESTION
Employers use case management companies to ensure that all of their employees' medical needs
are being met adequately.
Answer:
False
QUESTION
The benefits plan year is the 12-month period during which time benefit elections remain in
effect, which is restricted to a company's fiscal year.
Answer:
False
QUESTION
Seasonal work is a noneconomic reason for working part-time.
Answer:
False
QUESTION
There are three legal tests to determine a worker's status: the common-law test, the economic
realities test, and a hybrid test that incorporates various elements of both tests
Answer:
True
QUESTION
Lease companies are liable for protecting their leased employees under federal and state laws, but
complicating the issue is that the client company may also be legally responsible.
Answer:
True
, QUESTION
Corporate-owned life insurance can be used by employers to recover the costs of nonqualified
deferred compensation.
Answer:
True
QUESTION
Trust funds and insurance contracts do not secure an employer's promise to make future
payments.
Answer:
False
QUESTION
Top hat plans are unfunded plans.
Answer:
True
QUESTION
Nonstatutory stock options entitle executives to purchase their companies' stock in the future at a
predetermined price
Answer:
False
QUESTION
This cafeteria plan allows employees to exclude allocated income from federal income tax to pay
for the benefits.
Answer:
Pretax salary reduction plans
QUESTION
Which of following statements is true of outsourcing benefits functions?
Answer:
Outsourcing refers to an employer transferring responsibility to a third-party provider to manage
one or more benefits.
