Which of the Following Statements Regarding Profit-Sharing Plans Is NOT

question 34

Multiple Choice

Which of the following statements regarding profit-sharing plans is NOT correct?

• A) Deferred profit-sharing plans (DPSPs) need to be registered with the federal government.
• B) So called "top-hat" plans are often widely available to all employees, thus making them eligible for registration as a DPSP.
• C) Income generated by a DPSP is tax exempt until such time as the employee cashes in the plan.
• D) The majority of Canadian profit-sharing plans are cash-based plans.

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Definitions:

Rough-And-Tumble Play

A form of play involving physical activities like running, jumping, and play fighting, important for the physical and social development of children.

Early Childhood

Early childhood refers to the period of human development from birth to about eight years old, characterized by rapid physical, cognitive, and emotional growth.

Ethiopian

This term is related to Ethiopia, its people, culture, or other aspects pertaining to the East African country.

Cambodian

Pertaining to or originating from Cambodia, a country in Southeast Asia.