Which of the Following Statements Regarding Self-Employed Retirement Accounts Is

question 10

Multiple Choice

Which of the following statements regarding self-employed retirement accounts is true?

• A) A self-employed taxpayer who has hired employees may not set up a SEP IRA.
• B) A self-employed taxpayer who has hired employees may set up either a SEP IRA or an individual 401(k).
• C) A self-employed taxpayer who has hired employees may not set up an individual 401(k).
• D) All of the choices are false.

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Definitions:

Dominant Firm

A firm that has a large share of the total sales in a particular market, giving it significant control over the market.

Copper Cartel

An agreement among copper-producing countries or companies to control copper prices and production, often to maintain high prices.

Inelastic Demand

A market situation where the demand for a product does not significantly change with a change in price, indicating consumers’ lesser sensitivity to price changes.

Sub-Markets

Distinct segments within a larger market, often defined by consumers' preferences, product characteristics, or geographical regions.