Which of the Following Describes a Defined Benefit Plan

question 64

Multiple Choice

Which of the following describes a defined benefit plan?

• A) Distribution amounts determined by employee and employer contributions.
• B) Provides fixed income to the plan participants based on a formula.
• C) Allows executives to defer income for a period of years.
• D) Retirement account set up by an individual.

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Definitions:

Supply

Supply is the total amount of a specific good or service available to consumers, and it increases or decreases based on the good's price.

Demand

The desire for a particular good or service coupled with the ability and willingness to pay for it.

Substitutes

Goods or services that can be used in place of each other where the presence of one reduces the demand for the other.

Supply

The total amount of a product or service that is available to consumers in the market at current prices.