Which Statement Explains the Risk Involved in "Defined Contribution Plans

question 33

Multiple Choice

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

• A)Poor returns on the pension investments reduce the benefits for future retirees.
• B)High returns on the pension investments increase the benefit payments for the employer.
• C)The plan specifies the fixed benefits that future retirees will receive.
• D)The plan provides benefits to future retirees depending on their years of service.

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Definitions:

Minority Domination

A situation where a smaller or less powerful group exercises disproportionate control or influence over decision-making processes or organizational directions.

Decision Making Takes Longer

A situation where the process of choosing between alternatives or making decisions is extended due to various factors, such as complexity or lack of information.

Information Technology (IT)

The use of computers, storage, networking, and other physical devices, infrastructure and processes to create, process, store, secure and exchange all forms of electronic data.

Programmed Decisions

Decisions that are routine and repetitive, often made using standard operating procedures.