In a Cash-Balance Plan,the Employer Contributes ____ of the Funds

question 106

Multiple Choice

In a cash-balance plan,the employer contributes ____ of the funds and the employee contributes ____.

• A)100 percent; nothing
• B)any amount; a matched amount
• C)half; half
• D)nothing; 100 percent

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Definitions:

Market Price

The prevailing cost at which a service or asset is offered for sale or purchase in the open market.

Stock Split

involves dividing a company's existing stock into multiple shares to boost the liquidity of the shares, although the overall value of the company does not change.

Retained Earnings

The portion of a company’s profits that is kept or retained for reinvestment in the business, rather than being paid out as dividends to shareholders.

Book Value

The net value of a company's assets minus its liabilities and intangible assets, as recorded on the balance sheet.