The Accumulated Benefit Obligation Measures

question 77

Multiple Choice

The accumulated benefit obligation measures:

• A) the pension obligation on the basis of the plan formula applied to years of service to date and based on existing salary levels.
• B) an estimated total benefit at retirement and then computes the level cost that will be sufficient, together with interest expected to accumulate at the assumed rate, to provide the total benefits at retirement.
• C) the pension obligation on the basis of the plan formula applied to years of service to date and based on future salary levels.
• D) the shortest possible period for funding to maximize the tax deduction.

Realize the importance of planning at strategic, tactical, and operational levels in achieving organizational objectives.

Appreciate the role of organizing in structuring work and the impact of ethical decisions in business.

Understand the basic concepts and processes of classical conditioning.

Recognize the application of classical conditioning in real-world scenarios.

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Definitions:

Henri Fayol

A French engineer and scholar who developed the general theory of business administration and is best known for his 14 principles of management.

Scalar Chain

A principle of organizational management that establishes a clear line of authority from the top ranks through to the bottom levels within an organization.

Scientific Management

Emphasises careful selection and training of workers, and supervisory support.

Work Methods

The procedures and techniques employed to complete tasks efficiently and effectively in a workplace.