Which of the Following Statements About the Employee Retirement Income

question 80

Multiple Choice

Which of the following statements about the Employee Retirement Income Security Act (ERISA) is accurate?

• A)ERISA does not impose fiduciary duties on pension fund managers.
• B)ERISA does not allow pension plan participants to sue employers.
• C)ERISA does not require employers to establish or fund pension plans.
• D)ERISA does not guarantee employee participation in pension funds.

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Definitions:

Service Fee

A charge imposed for the provision of a service, often additional to the regular cost of goods or services sold.

Perpetual Inventory System

An accounting method that continuously tracks inventory levels by adjusting them with each sale or purchase transaction.

Journal Entries

The method by which financial transactions are recorded in the accounting records of a business, detailing the accounts affected and the amounts.

Maturity Date

The date on which a financial obligation must be repaid or a bond or other instrument reaches its expiration and the principal is due back to the investors.