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.

---

Definitions:

Consideration

In contract law, it refers to something of value exchanged by the parties involved that induces them to enter into the agreement.

Personal Defense

Strategies, methods, or actions employed by an individual to protect themselves from harm.

HDC

Stands for Holder in Due Course, a term in commercial law referring to a party who acquires a negotiable instrument in good faith and for value, thus having certain protections.

Faulty Product

A product that has defects, malfunctions, or does not meet established standards of quality or safety.