Match Each Statement with the Correct Term Below

question 12

Multiple Choice

Match each statement with the correct term below.
-Defined contribution plan

• A)A separate, parallel tax system designed to ensure a taxpayer pays some tax.
• B)A compensation tool that is based on potential price increases of the company's stock.
• C)An individual trust account maintained for the exclusive benefit of an individual or beneficiary.
• D)A type of defined contribution pension plan in which the company and the employee contribute a fixed percentage of the employee's salary to the plan.
• E)A pension plan in which the benefits are based on the number of years an employee has worked for a company and on the employee's annual salary.
• F)A pension plan whose benefits are determined by the amount of contributions the employee and the company contribute to the plan and the earnings of the plan.

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Definitions:

Constitution

The core rules or established traditions that govern how a state or any other organization is managed.

Corporation Law

Legal principles that govern the formation, operation, and dissolution of corporations.

Person

An individual human being, but in legal contexts, can also refer to entities recognized by law, such as corporations.

General Incorporation Law

A set of statutes established by a state that provides guidelines and regulations for the formation, operation, and dissolution of corporations.