Which of the Following Best Explains Why the Social Security

question 348

Multiple Choice

Which of the following best explains why the Social Security system is expected to face financial difficulties in the near future?

• A) Too much Social Security revenue was invested in the private sector rather than in government bonds.
• B) The federal government does not pay interest on the money it borrows from the Social Security system.
• C) The funds in the Social Security trust fund were invested in high-risk ventures that failed to pay off.
• D) The number of workers paying into the system is expected to decline relative to the number of retirees collecting benefits.

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Definitions:

Authority And Responsibility

A management principle stating that a person with authority (power to make decisions) should also be responsible for the outcomes of those decisions.

Performance Evaluation

The process of assessing the performance of employees, processes, or systems against set benchmarks or standards.

Financial Budgets

Detailed plans that outline an organization's financial goals and the strategies to achieve them, including projections of income, expenses, and cash flow.

Operating Budgets

An operating budget details the forecasted revenue and expenses for the day-to-day operations of a company for a specific period.