What Type of Pension Plan Commonly Includes Profit-Sharing Plans,stock Bonus

question 24

Multiple Choice

What type of pension plan commonly includes profit-sharing plans,stock bonus plans,and employee stock ownership plans?

• A)defined benefit
• B)defined contribution
• C)deferred contribution
• D)deferred benefit

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Definitions:

Durable Power of Attorney

A legal document that grants a designated person the authority to make financial and/or health care decisions on behalf of someone else, even if the grantor becomes incapacitated.

Incapacity

The lack of legal ability to perform an act, such as entering into a contract due to mental disability or minority.

Sound Mind and Memory

A legal term indicating that a person is mentally competent to make decisions and understand their consequences.

Holographic

Related to or produced by holography, a photographic technique that records the light scattered from an object and then presents it in a way that appears three-dimensional.