Neman, a Single Parent, Quit His Job and Started a Small

question 57

Multiple Choice

Neman, a single parent, quit his job and started a small independent business because he was unable to give adequate attention to his child. Being an entrepreneur gives him the freedom to give undivided attention to his child without jeopardizing his work. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

• A) Greater financial success
• B) Flexibility
• C) Greater challenge
• D) Survival

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Definitions:

Prior Service Cost

This is the cost of retroactive benefits granted to employees in a defined benefit plan amendment, to be recognized over future periods.

Retroactive Benefits

Retroactive benefits refer to payments or compensations provided for a period before the benefits were approved or a claim was settled.

Actuarial Present Value

Actuarial Present Value is the calculation of the current value of future cash flows or payments, taking into account factors such as mortality rates and interest.

Accumulated Benefit Obligation

The present value of future retirement benefits earned up to a certain point in time, under a defined benefit pension plan.