Which Statement Explains the Risk Involved in "Defined Benefit Plans

question 21

Multiple Choice

Which statement explains the risk involved in "defined benefit plans"?

• A)The plan places investment risk on employees since the future benefits are pre-specified.
• B)The plan sponsor never needs to increase its contributions to the pension trust.
• C)The plan may require the employee to pay $200 per month for each year of service.
• D)The plan specifies the eventual outflows from the pension trust to future retirees.

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Definitions:

FCB Grid

A model that categorizes consumer products into four quadrants based on high/low involvement and thinking/feeling decision-making processes.

Consumer Motivation

The driving forces behind consumer behaviors that push individuals to seek satisfaction through the purchase and use of products and services.

Addressability

The ability to identify and reach specific target audiences or devices, usually in the context of marketing or advertisements.

Market Segment

A collection of people or entities with one or more common attributes, leading them to have similar demands for products and/or services.