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:

Domesticated Plant

A plant that has been genetically modified by humans over generations through selective breeding for agricultural or ornamental purposes.

Genetically Different

Having variations in the DNA sequence among individuals or populations, which contribute to the biological diversity and heritable traits within species.

Wild Counterpart

The naturally occurring version of a domesticated or artificially maintained entity, often found in natural environments.

Grain Farming

The cultivation of cereal crops for the production of grain, used as food for humans and livestock.