Series 6 - Investment Company And Variable Contracts Products Representative Exam
Preview Mode
A deferred compensation plan is somewhat risky because if the business fails,
The employee becomes an owner of the firm
A
The employee has to help the firm pay back its debts
B
The employee must declare bankruptcy
C
The employee becomes a general creditor of the firm
D
Explanations
If an employee has a deferred compensation plan through their company and the company fails, the employee becomes a general creditor of the firm.