A Salary-Reduction Plan Is Also Known as a

question 56

Multiple Choice

A salary-reduction plan is also known as a

• A) 401(k) plan.
• B) Money-purchase plan.
• C) Profit-sharing plan.
• D) Defined-benefit plan.
• E) Stock bonus plan.

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company.

Legal Services

Professional services provided by a lawyer or legal firm, including advice, representation, and drafting of legal documents.

Par-value Preferred Stock

Par-value preferred stock is a type of preferred share that has a nominal face value indicating the amount that must be repaid if the company is liquidated.

Dividends

Distributions of profits from a corporation to its shareholders, typically in the form of payments.