COBRA Applies to EAPs If These Two Conditions Are Met

question 10

Multiple Choice

COBRA applies to EAPs if these two conditions are met. (Relationship with Employee Benefits Laws)

• A)The program qualifies as a welfare plan under ERISA and qualifies as a health care plan by providing counseling for a medical condition
• B)The program is a qualified plan under FSLA and as a welfare plan under ERISA
• C)The program qualifies as a welfare plan under FSLA and qualifies as a health care plan under ERISA
• D)The program qualifies as a health care plan by providing counseling for a medical condition, is a qualified plan under FSLA

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Definitions:

Oligopoly

A market structure dominated by a small number of large firms, offering similar or identical products, with significant barriers to entry for new competitors.

Joint Profits

The total earnings generated by two or more firms collaborating in a venture or partnership.

Marginal Cost

The uplift in total expenditure caused by the production of one more unit of a product or service.

Fixed Cost

Costs that do not change with the level of output produced, such as rent, salaries, and insurance.