Which of the following,if true,might make the benefit more appealing to a prospective employee?
A) In recent months, stocks have experienced a bull market.
B) The firm pays the maintenance fees for the investments.
C) Employees may choose the amount set aside each month, up to 10 percent of gross income, which is untaxed until the money is removed from the fund.
D) Over a ten-year period, the mutual funds included in the firm's option have accrued at a rate equal to the consumer price index.
E) The firm allows employees to select from and move funds around to a wide range of mutual fund options, some more conservative than others.

Question

Quizplus · Accepted Answer

E)A new employee will place more of a premium on his or her ability to participate in the investment process in the here and now, rather than assurances that the funds will accrue later. So Choice E is correct:employees will appreciate being able to protect the investment at difficult times and have the chance to move it to a fund that can bring a higher return during times of growth. Investments merely keeping up with inflation (Choice D)are not attractive, and a bull market lasting a few months might not be enough to reassure employees about the long term (Choice A). Paying overhead fees (Choice B)and letting workers choose the level of their involvement (Choice C)do nothing to make the savings option more beneficial if the value of the investment is unstable and liable to loss of principal.

Which of the Following,if True,might Make the Benefit More Appealing