Companies Can Generally Choose from Which Four Programs for Financing

question 42

Multiple Choice

Companies can generally choose from which four programs for financing their discretionary benefits plans. (Basic Design Considerations for Discretionary Benefits)

• A)Noncontributory, contributory, employee-financed, a combination of the other three
• B)Managed care, contributory, employee-financed, a combination of the other three
• C)Employee-financed, contributory , managed care, a combination of the other three
• D)Managed care, contributory, employee-financed, noncontributory

---

Definitions:

Gain On Sale

The profit that results from selling an asset for more than its purchase price.

Net Income

The total earnings or profit of a company after all expenses and taxes have been deducted from total revenue.

Retirement Of Debt

The process of paying off or settling a debt obligation, either through periodic payments over time or a lump sum payment.

Accumulated Depreciation

The cumulative sum of depreciation costs recorded for a fixed asset since its initial use.