Which of the Following Statements Is True with Regard to Defined

question 40

Multiple Choice

Which of the following statements is true with regard to defined benefit and defined contribution pension plans?

• A)It's easier for an employer to determine its annual pension contribution under a defined benefit plan than under a defined contribution plan.
• B)When a new pension plan is installed,it's more beneficial for older workers if it's a defined contribution plan rather than a defined benefit plan.
• C)The employer bears the investment risk under a defined contribution plan,and the employee bears the investment risk under a defined benefit plan.
• D)With a defined benefit plan,the retirement benefit is known is advance but the contributions vary;with a defined contribution plan,the contribution rate is fixed but the retirement benefit varies.

---

Definitions:

Minimum Reservation Point

The lowest acceptable outcome or value that a negotiator is willing to accept in a negotiation process.

Low-Context Culture

A culture in which communication is expected to be explicit and direct, with less reliance on context, non-verbal cues, and subtext to convey meaning.

Direct Questions

Questions that are straightforward and explicitly seek specific information, often requiring a direct answer.

Reward Systems

are mechanisms set in place by organizations to recognize and reward performance and encourage certain behaviors in employees.