Which of the Following Is True About Defined Contribution Plans

question 48

Multiple Choice

Which of the following is true about defined contribution plans?

• A)They shift the investment risk to the employer.
• B)They present greater administrative challenges to employers.
• C)They require annual premium payments to the PBGC.
• D)They are more prevalent in smaller than larger companies.
• E)They are becoming less common.

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Definitions:

United States

A country located primarily in North America, comprising 50 states and a federal district, known for its significant influence on global culture, economy, and politics.

Household Income

The total income received by all members of a household, including earnings from work, investments, and other sources before taxes and other deductions.

Perfect Equality

A theoretical state where all individuals have exactly the same income or wealth, eliminating disparities.

Income Distribution

The way in which total income is spread amongst the population or different groups within a society.