Profit-Sharing Plans and Employee Stock Ownership Plans Are Examples of Defined-Benefit

question 47

True/False

Profit-sharing plans and employee stock ownership plans are examples of defined-benefit plans.

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Definitions:

Incremental

Refers to the additional changes in costs or revenues that result from a business decision.

Capital Budgeting

The process used by companies to evaluate and select long-term investments that are expected to yield the highest returns over time.

Cash Flows

The comprehensive total of funds circulating in and out of a business, markedly affecting its ability to liquidate assets.

Erosion

The gradual reduction or diminution of something, often referring to the wearing away of assets, margins, or competitive advantage over time.