Characteristics of Profit-Sharing Plans Include All of the Following with the Exception

question 6

Multiple Choice

Characteristics of profit-sharing plans include all of the following with the exception of:

• A)A predetermined formula is used to allocate employer contributions to individual employees and to establish benefit payments.
• B)Forfeitures of benefits under the plan may be reallocated to the remaining participants.
• C)The company must make contributions to the plan if it has profits during the year.
• D)Annual employer contributions are not required,but substantial,recurring contributions must be made to satisfy the requirement that the plan be permanent.

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Definitions:

Generation

An age group that has unique and formative historical experiences.

Age Cohort

A group of individuals who share similar ages, and hence, are likely to have shared experiences, attitudes, and transitions.

Life Course

The chronological series of notable events, experiences, and changes that occur in a person's life from the time they are born until they die.

Life Course

The sequence of significant events, experiences, and transitions in an individual's lifetime, shaping their personal development and identity.