Which of the Following Statements Concerning Defined Benefit Plans Is

question 8

Multiple Choice

Which of the following statements concerning defined benefit plans is false?

• A) The company bears the risk of investments
• B) Employees are entitled to either a lump-sum payment or income stream at retirement
• C) Risk tolerance depends on funding status and its actuarial rate
• D) Defined benefit plans for young workers are typically more conservatively invested than defined contribution plans
• E) All of the above are true statements

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive in the market.

Consumer Surplus

The gap between the price consumers are ready to offer for a good or service and the effective amount they spend on it.

Trade

The process of purchasing, vending, or trading products and services among individuals or nations.

Factor Endowments

The amount of land, labor, capital, and entrepreneurship that a country or region possesses, which determines its comparative advantage in international trade.