Which of the Following Is True Concerning Employer Funding of Nonqualified

question 133

Multiple Choice

Which of the following is true concerning employer funding of nonqualified deferred compensation plans?

• A)Employers are required to invest salary deferred by employees in investments specified by the employees.
• B)Employers are required to annually fund their deferred compensation obligations to employees.
• C)Employers annually deduct the amount earned by employees under the plan.
• D)Employers may discriminate in terms of who they allow to participate in the plan.

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Definitions:

Labor Demand

Labor demand refers to the quantity of labor that employers are willing and able to hire at a given wage rate in a given market.

Price of Paper

The cost at which paper is sold or bought in the market.

Complementary

Pertains to goods or services that are often used together, where an increase in demand for one leads to an increase in demand for the other.

Fixed Proportions

A production scenario where inputs must be used in constant ratios, lacking flexibility in substitution or adjustment.