Vesting Refers to the Ability of an Employer to Reclaim

question 9

True/False

Vesting refers to the ability of an employer to reclaim all of the funds it may have paid into a former employee's retirement fund upon that employee's decision to resign.

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Definitions:

Cash Excess

Cash excess refers to the situation where a company or individual has more liquid cash available than is necessary for current operations or investments.

Master Budget

A comprehensive financial planning document that includes all of the smaller, individual budgets within an organization, projecting all major financial activities.

Static Budget

A static budget is a fixed budget that does not change or adjust in response to changes in business activity levels, such as sales volume or production capacity, during the budget period.

Flexible Budget

A budget that adjusts or varies with changes in the volume of activity, allowing for better control and analysis of performance by comparing actual costs to budgeted amounts at the actual activity level.