From an Employee's Point of View,what Advantage Do Defined Contribution

question 3

Multiple Choice

From an employee's point of view,what advantage do defined contribution plans have over defined benefit plans?

• A) The employer assumes the risk of investments.
• B) They tend to be more portable.
• C) They provide a higher pension for those who join the company later in life.
• D) Risk is averaged over a large group of employees.

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Definitions:

Net Worth

The total assets minus total liabilities of an individual or entity, representing the value of their economic position.

Consumption

The use of goods and services by households or individuals, representing the final use of produced goods and services in an economy.

Horizontal Equity

is a principle in taxation that mandates taxpayers with similar income or assets should be taxed at the same rate.

Tax Burdens

Tax burdens refer to the economic impact of taxes on individuals or corporations, often measured as a percentage of income or profits.