Which of the Following Statements Is (Are)true with Respect to Profit-Sharing

question 11

Multiple Choice

Which of the following statements is (are) true with respect to profit-sharing plans?
I.There is no limit on the amount that an employer can contribute annually to an employee's account under a profit sharing plan.
II.Profit sharing plans offer greater funding flexibility for employers than under other qualified plans.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

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Investors who provide capital to startups and early-stage companies with high growth potential in exchange for equity, or an ownership stake.

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A public market for buying and selling company shares and derivatives at an agreed price; it is a key indicator of a country’s economic health.

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Individuals who quickly achieve a net worth of one million units of currency, often as a result of entrepreneurship, investment, or winning a lottery.

MC

Marginal Cost; the cost of producing one additional unit of a product.