Which of the Following Statements About Pension Plans If Any

question 4

Multiple Choice

Which of the following statements about pension plans if any, is incorrect?

• A) Under a defined benefit plan, the employer agrees to give retirees a specifically defined benefit, such as $500 per month or 50 percent of the employee's final salary.
• B) A portable pension plan is one that an employee can carry from one employer to another.
• C) An employer's obligation is satisfied under a defined contribution plan when it makes the required contributions to the plan.The risk of inadequate investment returns is borne by the employee.
• D) If assets exceed the present value of benefits, the pension plan is fully funded.
• E) A defined contribution plan is, in effect, a savings plan that is funded by employers, although many plans also permit additional contributions by employees.

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Definitions:

Chiral

Pertaining to molecules that are not superimposable on their mirror images, often leading to optical activity.

Achiral

Describes a molecule that is superposable on its mirror image and does not exhibit chirality.

Meso Compound

A molecule with multiple stereocenters and an internal plane of symmetry, making it achiral despite its stereogenic centers.

Diastereomer

Stereoisomers that are not mirror images of each other, differing in the spatial arrangement of atoms around one or more asymmetric centers.