Which of the Following Is True of Defined Benefit Retirement

question 39

Multiple Choice

Which of the following is true of defined benefit retirement plans?

• A) The investment risk is borne by the employee.
• B) The amount of benefit paid at retirement is pre-determined.
• C) They are most common in private sector and nonunionized workforces.
• D) They typically do not guarantee benefits.

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Definitions:

Industrial Unions

Labor unions that represent all types of workers within an entire industry, focusing on broad industry-level labor issues and negotiations.

Craft Unions

are labor unions that represent workers specialized in particular trades or crafts, focusing on securing favorable employment conditions and maintaining standards within their fields.

Supply of Labor

The total hours that workers in an economy are willing to work at a given wage rate.

Employed Wage

The income received by an individual from employment, representing compensation for labor or services provided to an employer.