JKL Company Just Converted Its Traditional Defined-Benefit Plan to Another

question 1

Multiple Choice

JKL Company just converted its traditional defined-benefit plan to another type of plan.Under the plan,benefits are defined in terms of a hypothetical account balance,with retirement benefits dependent upon the value of the participant's account at retirement.Each year,employees receive an interest rate credit and a pay credit which is a specified percentage of compensation.This type of plan is called a

• A)section 401(k)plan.
• B)deposit-administration plan.
• C)cash-balance plan.
• D)trust fund plan.

---

Definitions:

Strategic Human Resource Management

The proactive management of people resources in an organization to achieve long-term business goals.

Core Capabilities

Integrated knowledge sets within an organization that distinguish it from its competitors and deliver value to customers

Cultural Audit

A thorough examination and evaluation of an organization's cultural attributes and practices.