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:

Common Stock

Represents equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Dividend Per Share

The portion of a company's earnings allocated to each outstanding share of common stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividends.

Common Stock

Common Stock represents a type of equity ownership in a corporation, giving holders a share of the profits in the form of dividends and voting rights in corporate decisions.