Question 1

Which of the following provides the executive the right to the appreciation in the price of the employer's stock,but not the stock itself.

Accepted Answer

A) Incentive Stock Option. 
B) Nonqualified Stock Option. 
C) Stock Appreciation Right. 
D) Tatum option.This is a distractor. 
A) Incentive Stock Option. 
B) Nonqualified Stock Option. 
C) Stock Appreciation Right. 
D) Tatum option.This is a distractor. C

Question 2

A Section _____ election allows the executive to elect to have the compensation taxed as ordinary income based on the value of the stock when it was granted,rather than when it ____.

Accepted Answer

A) 83(b)/ sells. 
B) 83(b)/ vests. 
C) 1244 / sells. 
D) 1244 / vests. 
A) 83(b)/ sells. 
B) 83(b)/ vests. 
C) 1244 / sells. 
D) 1244 / vests. B

Question 3

In the event of an employer bankruptcy,which of the following trusts requires that the trustee suspend payment to the trust beneficiary and hold assets for the employer's general creditors.

Accepted Answer

A) Endorsement trust. 
B) Rabbi trust. 
C) Section 83(b)trust. 
D) Secular trust. 
A) Endorsement trust. 
B) Rabbi trust. 
C) Section 83(b)trust. 
D) Secular trust. B

Question 4

An unsecured promise of a future benefit is:

Accepted Answer

A) Endorsement split dollar. 
B) Non-qualified deferred compensation. 
C) Restricted stock. 
D) Section 83(b)election. 
A) Endorsement split dollar. 
B) Non-qualified deferred compensation. 
C) Restricted stock. 
D) Section 83(b)election.

Question 5

Restricted stock is nontransferable and must be traded in compliance with:

Accepted Answer

A) SEC Rule 144. 
B) SEC Rule 1244. 
C) Section 83(b). 
D) Section 162. 
A) SEC Rule 144. 
B) SEC Rule 1244. 
C) Section 83(b). 
D) Section 162.

Question 6

Which of the followings is another name for a qualified employee stock purchase plan?

Accepted Answer

A) Section 83(b)stock purchase plan. 
B) Section 144 stock purchase plan. 
C) Section 423 stock purchase plan. 
D) Section 1244 stock purchase plan. 
A) Section 83(b)stock purchase plan. 
B) Section 144 stock purchase plan. 
C) Section 423 stock purchase plan. 
D) Section 1244 stock purchase plan.

Question 7

An employer-provided vehicle is often made available for personal use by an executive.The personal use represents additional compensation to the executive.The personal use is treated as a taxable fringe benefit and is included as additional compensation on the executive's Form ____.

Accepted Answer

A) 1099-Misc. 
B) 1099-R. 
C) K-1. 
D) W-2. 
A) 1099-Misc. 
B) 1099-R. 
C) K-1. 
D) W-2.

Question 8

All of the following are correct regarding Phantom Stock except:

Accepted Answer

A) The phantom stock bonus must be paid in cash. 
B) The Phantom Stock bonus is taxed as ordinary income. 
C) The Phantom Stock bonus is deductible by the employer. 
D) There is no compensation reported when a grant of phantom stock is made. 
A) The phantom stock bonus must be paid in cash. 
B) The Phantom Stock bonus is taxed as ordinary income. 
C) The Phantom Stock bonus is deductible by the employer. 
D) There is no compensation reported when a grant of phantom stock is made.

Which of the following provides the executive the right to the appreciation in the price of the employer's stock,but not the stock itself.

A Section _ election allows the executive to elect to have the compensation taxed as ordinary income based on the value of the stock when it was granted,rather than when it .

In the event of an employer bankruptcy,which of the following trusts requires that the trustee suspend payment to the trust beneficiary and hold assets for the employer's general creditors.

An unsecured promise of a future benefit is:

Restricted stock is nontransferable and must be traded in compliance with:

Which of the followings is another name for a qualified employee stock purchase plan?

An employer-provided vehicle is often made available for personal use by an executive.The personal use represents additional compensation to the executive.The personal use is treated as a taxable fringe benefit and is included as additional compensation on the executive's Form ____.

All of the following are correct regarding Phantom Stock except:

Personal Financial Planning

The Statement on Standards in Personal Financial Planning Services No

Time Value of Money Concepts

Fundamentals of Personal Financial Planning

Estate Planning Basics

Charitable Gift Planning Basics

Principles of Risk and Insurance

Insurance Planning Basics

Insurance Planning Basics

Investment Basics

Investment Planning

Planning for Retirement and Financial Independence

Planning Vehicles for Retirement

Elder Planning Basics

Education Planning Basics

Applications in Estate Planning

Applications in Risk Management

Applications in Investment Planning

Applications in Planning for Retirement

Applications in Employee Benefits Planning

Applications in Personal Financial Planning in Special Circumstances

Delivery Models and Regulatory Issues

Filters

Exam 21: Applications in Executive Compensation Planning

Which of the following provides the executive the right to the appreciation in the price of the employer's stock,but not the stock itself.

A Section _____ election allows the executive to elect to have the compensation taxed as ordinary income based on the value of the stock when it was granted,rather than when it ____.

In the event of an employer bankruptcy,which of the following trusts requires that the trustee suspend payment to the trust beneficiary and hold assets for the employer's general creditors.

An unsecured promise of a future benefit is:

Restricted stock is nontransferable and must be traded in compliance with:

Which of the followings is another name for a qualified employee stock purchase plan?

An employer-provided vehicle is often made available for personal use by an executive.The personal use represents additional compensation to the executive.The personal use is treated as a taxable fringe benefit and is included as additional compensation on the executive's Form ____.

All of the following are correct regarding Phantom Stock except:

Personal Financial Planning

The Statement on Standards in Personal Financial Planning Services No

Time Value of Money Concepts

Fundamentals of Personal Financial Planning

Estate Planning Basics

Charitable Gift Planning Basics

Principles of Risk and Insurance

Insurance Planning Basics

Insurance Planning Basics

Investment Basics

Investment Planning

Planning for Retirement and Financial Independence

Planning Vehicles for Retirement

Elder Planning Basics

Education Planning Basics

Applications in Estate Planning

Applications in Risk Management

Applications in Investment Planning

Applications in Planning for Retirement

Applications in Employee Benefits Planning

Applications in Personal Financial Planning in Special Circumstances

Delivery Models and Regulatory Issues

Filters

A Section _ election allows the executive to elect to have the compensation taxed as ordinary income based on the value of the stock when it was granted,rather than when it .