Employers Who Want Flexibility in How Much They Contribute to Their

question 129

Multiple Choice

Employers who want flexibility in how much they contribute to their employees' retirement plans would want to consider adopting a ____ plan.

• A)qualified defined contribution
• B)cash-balance
• C)defined benefit
• D)profit-sharing
• E)403(b)

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Definitions:

Revenue

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Quarterly Cash Payments

Regular financial distributions made by a company to its shareholders every three months.

Shareholders

Individuals or entities that own shares in a corporation, giving them a claim on part of the company's assets and earnings.

Regular Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits on a fixed schedule.