This Plan Sets Up a Hypothetical Individual Account for Each

question 69

Multiple Choice

This plan sets up a hypothetical individual account for each employee, and credits each participant annually with a plan contribution.The employer also guarantees a minimum interest credit on the account balance.Identify this plan.

• A)Unit benefit plan
• B)Money purchase plan
• C)Target pension plan
• D)Profit sharing plan
• E)Cash balance plan

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Definitions:

Plan A

Often implies a primary strategy or initial course of action set before any alternatives are considered.

Plan B

A backup plan or alternative strategy in case the original plan fails or circumstances change.

Social Influence

The effect of other people's actions, perceptions, or behavior on an individual's attitudes, beliefs, or actions.

Majority And Minority

Terms related to the larger part of a group (majority) and the smaller part or subgroups within it (minority), often discussed in the context of social dynamics and power structures.