In a _____ Plan, an Employer Agrees to Provide a Specific

question 21

Multiple Choice

In a _____ plan, an employer agrees to provide a specific level of retirement pension, which is expressed as either a fixed dollar or a percentage-of-earnings amount that may vary (increase) with years of seniority in the company.

• A)defined benefit
• B)noncontributory benefit
• C)401(k)
• D)shared benefit

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Definitions:

Transfer

The act of moving or conveying property or rights from one party to another.

Primary Liability

The obligation falls directly on the individual or entity primarily responsible for an obligation, especially in financial transactions.

Principal's Name

The name of the main party or entity involved in a financial or legal transaction.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.