Under a Defined Contribution Plan, the Contribution Made on Behalf

question 71

True/False

Under a defined contribution plan, the contribution made on behalf of the employee is determined using a formula dependent on the employee's current compensation.

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Definitions:

Incentive

An external stimulus that motivates behavior (for example, money or fame).

Drive-Reduction Theory

A theory suggesting human behavior is motivated by the desire to reduce internal drives of needs, such as hunger.

Getting Some Food

The act of obtaining food to satisfy hunger, which can encompass a range of behaviors from purchasing food at a store to preparing a meal.

Sleeping

The natural state of rest for the mind and body, characterized by altered consciousness and reduced sensory activity.