Because of Their Actuarial Aspects,defined-Benefit Plans Tend to Be More

question 79

True/False

Because of their actuarial aspects,defined-benefit plans tend to be more complicated and more expensive to administer than defined-contribution plans.

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Definitions:

Retained Earnings

Cumulative net earnings not distributed as dividends to shareholders, but instead reinvested in the business.

Inflation

The pace at which prices for goods and services across the board go up, diminishing the value of money.

Required Rate

The minimum return an investor expects to achieve on an investment, considering its risk level and the opportunity cost of forgoing other investments.

Marginal Cost

Marginal cost refers to the increase or decrease in the total cost of producing one more unit of a good or service.