Which of the Following Statements About Defined Contribution Plans Is

question 8

Multiple Choice

Which of the following statements about defined contribution plans is incorrect?

• A) in general, employees can choose the investment vehicle under a defined contribution plan. thus, highly risk-averse employees can choose low-risk investments, while more risk-tolerant employees can choose high-risk investments.
• B) in a defined contribution plan, the employer must make larger-than-average contributions to the pension plan when investment returns have been below expectations.
• C) defined benefit plans are used more often by large corporations than by small companies.
• D) the pbgc insures a portion of pension benefits.
• E) a defined contribution plan places the risk of poor pension portfolio performance on the employee.

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Definitions:

Redefined Look

The process or result of changing or updating the appearance, style, or design of someone or something.

Nationalized

The process by which a government takes control of a private industry, business, or assets, turning it into state ownership.

Collaborated

Worked together on a common project or goal, often used in the context of creative processes like film production or research.

William Randolph Hearst

An influential American newspaper publisher and media tycoon of the late 19th and early 20th centuries, known for sensationalist journalism.