A Defined Benefit Plan Differs from a Defined Contribution Plan

question 19

Multiple Choice

A defined benefit plan differs from a defined contribution plan in that a defined benefit plan

• A)has a liability that must be actuarially computed.
• B)is required by ERISA.
• C)requires a corporation to make a series of payments of a specified amount to a pension fund.
• D)requires journal entries, and the defined contribution plan does not.

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Definitions:

Avoid Details

The approach of focusing on broader objectives or strategies without being bogged down by intricate specifics.

Strategic Opportunism

The ability of an organization to remain focused on long-term objectives while also being flexible enough to take advantage of short-term opportunities.

Long-Term Objectives

Strategic goals set to be achieved over an extended period, typically over several years, focusing on sustainable growth and development.

Timely Solutions

Responses or resolutions provided within an appropriate or advantageous time frame, often critical for addressing issues effectively.