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:

Automobile Emissions

The gases and particles that are released into the atmosphere by vehicles powered by internal combustion engines, contributing to air pollution.

Global Warming

Global warming is the long-term rise in Earth's average surface temperature, primarily due to human activities like burning fossil fuels, leading to climate change.

Global Temperatures

A measure of the average temperature of the Earth's surface, which has been increasing due to factors like greenhouse gas emissions.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to analyze the effect of one variable on another while holding everything else constant.