Which of the Following Requirements Should Be Fulfilled by a Plan

question 66

Multiple Choice

Which of the following requirements should be fulfilled by a plan to be qualified?

• A)The plan must be designed to be permanent and have continuing contributions.
• B)The plan must be legally binding, in writing, and communicated clearly to all the stakeholders of the company.
• C)The plan must be for the exclusive benefit of the employees rather than their beneficiaries.
• D)The plan must not be applicable to the highly compensated employees of the organization.
• E)The principal or income of the pension plan cannot be diverted to any other purpose even if the assets exceed those required to cover accrued pension benefits.

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Definitions:

Competitive Intelligence

The systematic gathering, analysis, and application of information about competitors, market trends, and other external factors affecting an organization's competitive position.

Standardize

The process of making something conform to a standard.

MRO Supplies

Maintenance, Repair, and Operations (MRO) supplies are goods used in the production process but do not become part of the end product, including lubricants, safety equipment, and cleaning supplies.

Decentralization

The distribution of decision-making power away from a central authority, allowing for more localized or divisional decision control.