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Sonik,a wireless phone company,tested the effect of a price reduction for text messaging.It lowered prices from $0.08 to $0.04 per message and found that the number of messages sent tripled.This means that the:
Profit-Sharing Plan
A retirement plan that gives employees a share in the profits of the company, often vested over time.
Simplified Method
A straightforward calculation approach, often used for determining the taxable portion of annuity payments or retirement benefits.
Qualified Pension Plan
A retirement plan that meets requirements set forth by the IRS to qualify for favorable tax treatment.
Tax-Deferred
Tax-Deferred refers to investment earnings such as interest, dividends, or capital gains that accumulate tax-free until the investor takes constructive receipt of the gains.
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