Which of the Following Is a Characteristic of a Defined-Benefit

question 51

Multiple Choice

Which of the following is a characteristic of a defined-benefit pension plan?

• A) It raises few accounting issues for employers.
• B) Retirement benefits are based on the plan benefit formula.
• C) It is simple to construct.
• D) Retirement benefits are contingent on how much an employee has accumulated in a retirement account.

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Definitions:

Public‐spirited

Exhibiting a selfless concern for the well-being of the community and the willingness to act for the public good.

Air Pollution

The presence of substances in the atmosphere that are harmful to the health of humans and other living beings or cause damage to the climate or materials.

Medical Care

Services provided by healthcare professionals to diagnose, treat, or prevent diseases and injuries in individuals.

Externalities

Costs or benefits that affect a party who did not choose to incur that cost or benefit, often leading to market failure if not properly addressed through regulation or negotiation.