Which of the Following Is True of Defined Benefit Pension

question 66

Multiple Choice

Which of the following is true of defined benefit pension plans?

• A) The investment risk is borne by the employee.
• B) The amount of benefit paid at retirement is pre-determined.
• C) They are most common in private sector and nonunionized workforces.
• D) They typically do not guarantee benefits.

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Definitions:

Approximate Price Level

An estimated cost or price range of goods or services in a particular market or sector, often used for budgeting or planning purposes.

Common Approaches

Standard or widely accepted methods or procedures used to achieve a particular goal or complete a task.

Competition-oriented

An approach or strategy focused on understanding, adapting to, and outperforming competitors in the marketplace.

Price Level

The current average cost of goods and services in an economy or specific market, which can affect purchasing power and economic health.