When an Employer Promises to Set Aside a Certain Amount

question 65

Multiple Choice

When an employer promises to set aside a certain amount of money for each employee each year, it has set up a

• A) Defined-benefit plan.
• B) Money-purchase plan.
• C) Profit-sharing plan.
• D) Salary-reduction plan.
• E) Stock bonus plan.

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Definitions:

Salary Caps

A stipulated maximum amount that can be spent on players' salaries by sports organizations or teams to maintain competitive balance.

League Officials

Individuals appointed to enforce rules, conduct, and fair play within sports leagues, ensuring that competitions are held according to established standards.

Model

A formal statement of a theory, usually a mathematical statement of a presumed relationship between two or more variables.

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained, often used as a framework for scientific or philosophical understanding.