In a Defined Benefit Plan the Differences Between Expected and Actual

question 13

Multiple Choice

In a defined benefit plan the differences between expected and actual returns on high quality bonds will lead to:

• A) any actuarial and investment risk moving from the employer to the employee.
• B) actuarial gains and losses.
• C) a change in the discount rate.
• D) none of the given answers.

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Definitions:

Acquisition Differential

The difference between the cost of acquiring a company and the fair value of its identifiable net assets, often recognized as goodwill.

Business Combination

A transaction or event in which an acquirer gains control over one or more businesses, merging entities into one operational unit.

Voting Shares

Voting shares are shares of a company's stock that grant the shareholder the right to vote on corporate policy and the composition of the board of directors.

Board of Directors

A group of individuals elected by the shareholders of a company to oversee the management and provide guidance on corporate affairs.