A Firm Need Not Contribute to Its Qualified Profit-Sharing Plan

question 51

True/False

A firm need not contribute to its qualified profit-sharing plan only in those years it does not earn a profit.

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Definitions:

Selective Demand

Demands aimed at persuading customers to buy specific brands or products instead of general product categories.

Primary Demand

The overall demand for a product category or industry, as opposed to demand for a specific brand within that category.

Generic Demand

The overall demand for a category of products or services, not linked to any specific brand or model.

Product Class

A broad category of products that serve a similar function or are targeted at a similar customer segment.