Which of the Following Describes a Defined Contribution Plan

question 56

Multiple Choice

Which of the following describes a defined contribution plan?

• A)Provides guaranteed income on retirement to plan participants.
• B)Employers and employees generally may contribute to the plan.
• C)Generally set up to defer income for executives and highly compensated employees but not other employees.
• D)Retirement account set up to provide an individual a fixed amount of income on retirement.

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Definitions:

Explicit Agreement

A clearly defined and articulated agreement between parties, potentially including contractual elements, that details specific terms and conditions.

Uncertainty Reduction Theory

A communication theory focusing on how individuals seek information to reduce uncertainties about others in initial interactions or unfamiliar situations.

Socialization Process

The method by which individuals learn and adopt the values, norms, and behaviors necessary for participation within a society or organization.

Anticipatory Socialization

The process by which individuals acquire the norms, values, and behaviors appropriate for a role they are about to enter, before actually entering it.