Which of the Following Statements Regarding Defined Benefit Plans Is

question 101

Multiple Choice

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

• A)The benefits are based on a fixed formula.
• B)The vesting period can be based on a graded or cliff schedule.
• C)Employees bear the investment risks of the plan.
• D)Employers are generally required to make annual contributions to meet expected future liabilities.

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Definitions:

Uncertainty Avoidance

A cultural dimension that describes the extent to which people in a society are uncomfortable with ambiguity and risk.

Individual Differences

The way in which factors such as skills, abilities, personalities, perceptions, attitudes, values, and ethics differ from one individual to another.

Consensus

A general agreement among members of a specific group or community.

Glass Ceiling

A transparent barrier that keeps women from rising above a certain level in organizations.