The Two Kinds of Pension Plans That Are Commonly Used

question 31

True/False

The two kinds of pension plans that are commonly used by employers are: defined obligation plans and defined contribution plans.

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Definitions:

Times-Interest-Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations based on its current earnings.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue.

ROA

Return on Assets, a financial ratio indicating the profitability of a company relative to its total assets.

ROA

Return on Assets, an indicator of how profitable a company is relative to its total assets, illustrating how efficiently a company is using its assets to generate earnings.