Which of the Following Statements Regarding Keogh Plans Is False

question 2

Multiple Choice

Which of the following statements regarding Keogh plans is false?

• A) Keogh plans provide a tax-deferred retirement savings option for self-employed individuals.
• B) Keogh plans must be administered by an independent trustee.
• C) Keogh plans can be either defined-benefit or defined-contribution plans.
• D) A self-employed person with a Keogh plan is not required to provide retirement benefits to his or her employees through the plan.

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Definitions:

Joint Ventures

Business arrangements in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project.

Business Incubators

Organizations or initiatives designed to support startups and young businesses by providing resources, mentorship, and sometimes capital or office space to foster growth and success.

Home-Based Business

A business operation that is conducted primarily from the owner's home, often characterized by lower overhead costs and flexible working hours.

Lower Costs

Reduction in the expenditure or price associated with purchasing or producing something.