Which of the Following Statements Regarding Defined Contribution Plans Is

question 16

Multiple Choice

Which of the following statements regarding defined contribution plans is false?

• A)Employers bear investment risk relating to the plan.
• B)Employees immediately vest in their contributions to the plan.
• C)Employers typically match employee contributions to the plan to some extent.
• D)An employer's vesting schedule is used for employers' contributions in determining the amount of the plan benefits the employee is entitled to receive on retirement.

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Definitions:

Binding Contract

A legally binding contract between two or more parties that can be upheld in court.

Formal Written Agreement

A legally binding contract that is documented in writing and signed by all parties involved.

Implied Acceptance

An agreement to the terms of a contract demonstrated through actions or behaviors, rather than explicitly communicated through words.

Telegram Acceptance

The acceptance of a contractual offer or agreement through a telegram, historically significant for its immediacy and legal recognition.