Which of the Following Is True of Defined Benefit Retirement

question 68

Multiple Choice

Which of the following is true of defined benefit retirement plans?

• A) In these plans, the investment risk is borne by the employee.
• B) In these plans, the amount of benefit paid at retirement is predetermined.
• C) They are most common in private sector and nonunion workforces.
• D) They typically do not guarantee benefits.

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Definitions:

Subordinates

Individuals or groups who are lower in rank, position, or authority within a hierarchy.

Direction

Can refer to guidance or supervision towards achieving a goal or to the specific path that something or someone moves or is aimed toward.

Bureaucracy

A system of administration characterized by strict policies, procedures, and hierarchy, typically within governments or large organizations.

Salaried Staff

Employees who are paid a fixed amount by their employers, regardless of the hours worked, typically on an annual basis.