Which of the Following Describes a Defined Contribution Plan

question 100

Multiple Choice

Which of the following describes a defined contribution plan?

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

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Definitions:

Organizations

Groups of individuals structured and managed to pursue collective goals, typically through a system of rules and norms.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony in the group results in an irrational or dysfunctional decision-making outcome.

Devil's Advocate

A person who takes a position they do not necessarily agree with for the sake of argument to explore and critically discuss a particular issue.

Group Leader

A person who takes charge in guiding, directing, and managing a team or group towards achieving collective goals and objectives.