A Positive Aspect of Defined-Benefit Plans Is That

question 191

Multiple Choice

A positive aspect of defined-benefit plans is that

• A)they are more transferable than defined-contribution plans.
• B)they generally permit earlier vesting than defined-contribution plans.
• C)the funds are out of reach of corporate creditors.
• D)the plans include disability and survivor's benefits.

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Definitions:

Economic Profit

Profit calculated by subtracting both explicit and implicit costs from total revenues, providing a measure of the true economic performance of a venture.

Purely Competitive Market

A market structure characterized by a large number of small firms selling identical products, with no single firm able to influence market prices.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or sales, such as rent, salaries, or loan payments.

Profit-Maximizing Output

The level of production at which a firm achieves the maximum possible profit, where marginal cost equals marginal revenue.