Lillian Has a Defined Benefit Plan That Promises an Annual

question 14

Multiple Choice

Lillian has a defined benefit plan that promises an annual retirement benefit based on the average of her last three years of salary times 2 times years of service.At retirement Lillian has 15 years of service and an average salary over the last 3 years of $65,000.What will her annual benefit be?

• A) $65,000
• B) $50,500
• C) $35,400
• D) $19,500
• E) cannot determine

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Definitions:

Mission

A statement or declaration of an organization's core purpose and focus that normally remains unchanged over time.

Cost Synergy

The reduction in total costs that can result from merging or joining two separate entities, processes, or systems, leading to improved efficiency or economies of scale.

Corporate Recycling

The processes and strategies implemented by companies to reuse materials and reduce waste, reflecting a commitment to environmental sustainability.

Porter's Model

Also known as Porter’s Five Forces analysis, it is a framework for analyzing a company's competitive environment and identifying the forces affecting profitability.