When a Company Sets Up a Defined Contribution Pension Plan

question 9

Multiple Choice

When a company sets up a defined contribution pension plan, the ________ bears all the risk and the ________ receives all the return from the plan's assets.

• A) employee; employee
• B) employee; employer
• C) employer; employee
• D) employer; employer

---

Definitions:

Short-form Mergers

A type of merger in which a parent company merges with its subsidiary where the parent already owns most of the subsidiary's shares, simplifying the process.

Voting Power

The rights of shareholders or members to vote on corporate or organizational matters.

Class Action

A type of lawsuit where one of the parties is a group of people who are represented collectively by a member of that group.

Dividends

Disbursements issued by a company to its shareholders, representing a distribution of the company's earnings to its stockholders.