Which of the Following Describes a Defined Benefit Plan

question 77

Multiple Choice

Which of the following describes a defined benefit plan?

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

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Definitions:

Vertical Hierarchy

An organizational structure in which authority and responsibility are clearly defined and arranged according to levels of management, from highest to lowest.

Horizontal Specialization

An organizational structure approach that focuses on dividing work and roles based on specialized functional activities or operations across the same hierarchical level.

Division of Labor

The allocation of different tasks or jobs to different people or groups, often to improve efficiency and productivity.

Economic Power

The ability of an entity, such as a country, company, or individual, to influence or control economic activities, markets, or resources, often translating into political or social power.