In Which of the Following Is the Retirement Plan Contribution

question 76

Multiple Choice

In which of the following is the retirement plan contribution for the employee dependent on the financial success of the employer?

• A)Profit-sharing
• B)Employee stock-ownership
• C)Nonqualified deferred-compensation
• D)Salary reduction

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Definitions:

Certainty Equivalent Approach

A method used to evaluate investment opportunities under conditions of uncertainty, adjusting future cash flows to present value as if they were certain.

Forecast Cash Flow

The estimation of the amount of money expected to be received and paid out over a future period.

Risk Adjusted Rate

A rate of return that has been modified to take into account the risk of the investment, offering a way to compare the attractiveness of various investments.

New Venture

A newly established business enterprise, particularly one that is entrepreneurial in nature, aiming to meet a marketplace need by developing a viable business model around a product, service, process, or platform.