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:

Horizontal Merger

The combination of two or more firms operating in the same industry or production stage to expand market share or reduce competition.

Cultural Integration

The process in which individuals from diverse cultural backgrounds come together to create a cohesive, unified community.

Cultural Assimilation

The process by which a person or group's language and/or culture come to resemble those of another group.

Cultural Pluralism

The coexistence of diverse cultures, where cultural differences are accepted and appreciated by the majority society.