From a Funding Obligation Perspective,why Do Employers Prefer to Use

question 6

Multiple Choice

From a funding obligation perspective,why do employers prefer to use a defined contribution pension plan?

• A) Liability is limited to the amount placed into the plan.
• B) Actuarial predictions are made easier.
• C) Pensioners are guaranteed a fixed sum of money.
• D) This avoids "underfunded" plans.

---

Definitions:

Independent Agent

An individual or entity that sells products or services on behalf of one or more companies but is not directly employed by any of them.

Sales Force

A dedicated team or department within a company focused on selling the company's products or services.

Manufacturing Business

An enterprise involved in the industrial production of goods, transforming raw materials into finished products on a large scale.

Personal Selling

A marketing strategy where salespersons use face-to-face interaction to sell products or services directly to consumers.