When a Company Sets Up a Defined Contribution Pension Plan

question 76

Multiple Choice

When a company sets up a defined contribution pension plan, the __________ bears all the risk, and the __________ receives all the return from the plan's assets.

• A) employee; employee
• B) employee; employer
• C) employer; employee
• D) employer; employer
• E) Cannot determine; depends on the economic environment.

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Definitions:

Overt Power

The visible, explicit, and acknowledged capacity to influence others or the outcome of events.

Coercive Power

The ability to influence others' behavior through threats, punishment, or sanctions.

Employees' Participation

The involvement of employees in making decisions that affect their work and the organization.

Fostering Participation

Encouraging and facilitating engagement and active involvement of individuals or groups in activities, decision-making processes, or projects.