Which of the Following Statements Is True Regarding Pension Plans

question 25

Multiple Choice

Which of the following statements is true regarding pension plans?

• A) Under salary reduction plan,the employer's fiduciary decides where to invest funds.
• B) Under defined benefit plan,the employee elects to contribute some amount of pretax income to his/her retirement account.
• C) Under defined contribution plan,the risk of investment is borne by the employer.
• D) Under ERISA,employer is not required to offer a pension plan.

Identify the role and limitations of exemption or exclusion clauses in contracts.

Differentiate between conditions precedent and subsequent in contractual obligations.

Explain the significance of performance and tender of performance in fulfilling contractual obligations.

Understand the impact of fundamental breach on the applicability of exemption clauses.

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Definitions:

Sample Mean

The mean of a set of samples, obtained by adding all the values together and then dividing by the total count of observations.

Weekdays

The days of the week typically considered as working days, usually Monday through Friday, excluding the weekend.

Sampling Distribution

A statistical function that describes all the possible values and likelihoods that a statistic can take within a given range.

Statistic

A numerical value that summarizes or describes an aspect of a set of data.