RICP 2 Competency 11 Quiz correctly answered
already passed updated
1. Which of the following
A) I only
statements about types of equity-
based compensa- tion offered to The answer is A. Statement II is incorrect
executives today is cor- rect? because there can be a number of problems
I. Accounting rule changes have created by giving executives small outright
made stock options less attractive ownership inter- ests.
at the pre- sent. (LO 11-1-5)
II. For privately held companies,
provid- ing executives with
outright ownership interests is a
popular option.
A) I only
B) II only
C)Both I & II
D) Neither I nor II
B) A single person retiring today
2. Which of the following statements
under the tra- ditional system with 20
con- cerning both military
years of active military service receives
retirement pay systems are
50% of their preretirement pay.
correct?
A) Only those with 10 years of The answer is B. The traditional system
active military service or more provides a benefit of 2.5 of average base pay
are entitled to retirement pay. times years of service. The blended
B) A single person retiring today retirement system provides a benefit of
under the traditional system 2.0% of average base pay times years of
with 20 years of active military service. A is incorrect as benefits require
service receives 50% of their 20 years of active duty military service. C is
preretirement pay. incorrect as the plan does provide for cost
C)The program does not offer of living increas- es.
cost of living increases. (LO 11-3-5)
1/
16
,RICP 2 Competency 11 Quiz correctly answered
already passed updated
3. All of the following are reasons an exec- B) Similar to a 401(k) plan, benefits
are quite
utive may want to participate in secure.
a non- qualified deferred
compensation plan
2/
16
, RICP 2 Competency 11 Quiz correctly answered
already passed updated
EXCEPT: The answer is B. Nonqualified plan assets
are
A)Properly designed plans offer tax-de- available to the claims of the
company's creditors,
ferral to the executive. which is not the case with a 401(k)
B) Similar to a 401(k) plan, plan. (LO 11-1-1)
benefits are quite secure.
C)A plan may provide for an
employer's matching contribution.
D) Participating allows for
systematic savings for
retirement.
4. A participant in a nonqualified plan that B) 12
defers compensation for 5 years can
elect to an additional deferral period as The answer is B. This provision in
Code Sec.
long as the plan allows it, and the compensation to the
elec- tion is made more than plan.
months B) Choosing the life and
prior to the time the distribution 50% survivor
was scheduled. distribution option
A) 6 results in a 10% re-
B) 12 duction in benefits,
C)18 regardless of the age of
the spouse.
5. Which of the following statements C)The plan offers a lump
con- cerning the FERS retirement sum distrib-
system is correct?
A) Participants make a mandatory
con- tribution of 7% of
3/
16
already passed updated
1. Which of the following
A) I only
statements about types of equity-
based compensa- tion offered to The answer is A. Statement II is incorrect
executives today is cor- rect? because there can be a number of problems
I. Accounting rule changes have created by giving executives small outright
made stock options less attractive ownership inter- ests.
at the pre- sent. (LO 11-1-5)
II. For privately held companies,
provid- ing executives with
outright ownership interests is a
popular option.
A) I only
B) II only
C)Both I & II
D) Neither I nor II
B) A single person retiring today
2. Which of the following statements
under the tra- ditional system with 20
con- cerning both military
years of active military service receives
retirement pay systems are
50% of their preretirement pay.
correct?
A) Only those with 10 years of The answer is B. The traditional system
active military service or more provides a benefit of 2.5 of average base pay
are entitled to retirement pay. times years of service. The blended
B) A single person retiring today retirement system provides a benefit of
under the traditional system 2.0% of average base pay times years of
with 20 years of active military service. A is incorrect as benefits require
service receives 50% of their 20 years of active duty military service. C is
preretirement pay. incorrect as the plan does provide for cost
C)The program does not offer of living increas- es.
cost of living increases. (LO 11-3-5)
1/
16
,RICP 2 Competency 11 Quiz correctly answered
already passed updated
3. All of the following are reasons an exec- B) Similar to a 401(k) plan, benefits
are quite
utive may want to participate in secure.
a non- qualified deferred
compensation plan
2/
16
, RICP 2 Competency 11 Quiz correctly answered
already passed updated
EXCEPT: The answer is B. Nonqualified plan assets
are
A)Properly designed plans offer tax-de- available to the claims of the
company's creditors,
ferral to the executive. which is not the case with a 401(k)
B) Similar to a 401(k) plan, plan. (LO 11-1-1)
benefits are quite secure.
C)A plan may provide for an
employer's matching contribution.
D) Participating allows for
systematic savings for
retirement.
4. A participant in a nonqualified plan that B) 12
defers compensation for 5 years can
elect to an additional deferral period as The answer is B. This provision in
Code Sec.
long as the plan allows it, and the compensation to the
elec- tion is made more than plan.
months B) Choosing the life and
prior to the time the distribution 50% survivor
was scheduled. distribution option
A) 6 results in a 10% re-
B) 12 duction in benefits,
C)18 regardless of the age of
the spouse.
5. Which of the following statements C)The plan offers a lump
con- cerning the FERS retirement sum distrib-
system is correct?
A) Participants make a mandatory
con- tribution of 7% of
3/
16
