Characteristics of Profit-Sharing Plans Include All of the Following with the Exception

question 6

Multiple Choice

Characteristics of profit-sharing plans include all of the following with the exception of:

• A)A predetermined formula is used to allocate employer contributions to individual employees and to establish benefit payments.
• B)Forfeitures of benefits under the plan may be reallocated to the remaining participants.
• C)The company must make contributions to the plan if it has profits during the year.
• D)Annual employer contributions are not required,but substantial,recurring contributions must be made to satisfy the requirement that the plan be permanent.

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Definitions:

Correlation

A metric that describes how closely two or more variables' movements are related.

Linear Correlation

A correlation that is best expressed visually as a straight line.

Direct Correlation

A relationship where an increase in one variable is associated with an increase in another, indicating a positive linear relationship.

Scatterplot

A graphical representation using dots to show the relationship between two quantitative variables.