There Are Two Types of Pension Plan

question 139

Multiple Choice

There are two types of pension plan. In a defined contribution plan, a company contributes a specific amount of money, often based on profits, to a fund owned by its employees. In a defined benefit plan, the company promises to make specific lifetime payments to its employees when they retire. The payments depend on each employee's pay at retirement, years of service, and expected lifespan. Eugene F. Brigham, Financial Management: Theory and Practice

• A) Nonargument.
• B) Argument; conclusion: In a defined benefit plan ... when they retire.
• C) Argument; conclusion: In a defined contribution plan ... owned by its employees.
• D) Argument; conclusion: The payments depend ... expected lifespan.
• E) Argument; conclusion: There are two types of pension plan.

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Definitions:

Purchasing Manager

A professional responsible for overseeing the acquisition of goods and services for their organization, ensuring both quality and cost-effectiveness.

Supplier Performance

It involves evaluating the efficiency and effectiveness of a supplier in terms of product quality, delivery timeliness, and cost management.

Purchasing Manager

A professional responsible for sourcing goods and services for a company, negotiating contracts, and managing supply chain relations.

Appropriate Suppliers

Vendors or providers that meet specific criteria for quality, reliability, and ethical standards, suitable for a business's needs.