New Companies and Those with Volatile Earnings and Uncertain Cash

question 44

True/False

New companies and those with volatile earnings and uncertain cash flows generally prefer defined-contribution plans to defined-benefit plans.

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Definitions:

Pure Strategy

Strategy in which a player makes a specific choice or takes a specific action.

Optimal Response

Optimal response is a strategy that maximizes a player's benefits given the strategies chosen by others, commonly used in game theory.

Nash Equilibrium

A concept in game theory where no player can gain by unilaterally changing their strategy if the strategies of others remain unchanged.

Pure Strategy

In game theory, a strategy where a player consistently chooses a specific action.