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:

Labor

The effort by workers to produce goods or provide services in exchange for payment.

Capital

Assets used in the production of goods and services, often categorized as physical (like machinery) or financial (like money at hand).

Average Total Cost

The total cost of production divided by the quantity of output produced, including both fixed and variable costs.

Fixed Costs

Costs that do not change with the level of output produced, such as rent, salaries, and loan payments.