Which Statement Is Correct

question 10

Multiple Choice

Which statement is correct?

• A)The plan sponsor of a defined benefit plan never needs to increase its contributions to the pension trust.
• B)A defined contribution plan is a pension plan that places investment risk on the employers.
• C)Inadequate contributions to a defined benefit plan by the plan sponsor or poor investment returns will result in an underfunded pension.
• D)A defined contribution plan specifies the fixed benefits that future retirees will receive.

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Definitions:

Economic Control

The regulation and manipulation of the economic activities and institutions by entities such as governments or large corporations, often to maintain power or achieve specific economic objectives.

Political Control

The mechanisms, processes, and strategies through which a government or political entity maintains its influence and authority over its jurisdiction.

Vertical Mosaic

A concept describing societies that are stratified not only by socioeconomic status but also by ethnicity, with different ethnic groups occupying different positions in the social hierarchy.

Ethnic Hierarchy

A system of social stratification based on ethnicity, where different ethnic groups are ranked in a hierarchy above or below each other on the basis of assumed superiority or inferiority.