Match Each Statement with the Correct Term Below

question 51

Multiple Choice

Match each statement with the correct term below.
-Defined benefit 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:

Par-value Share

A type of share that has a face value or nominal value assigned to it, which is the minimum price at which the shares can be issued.

Secured

A status indicating that a loan or credit has collateral attached to it, ensuring the lender's investment is protected.

Separate Legal Entity

The principle that a corporation exists separately from the people who created it.

Unanimous Shareholders' Agreement

An agreement among all shareholders of a corporation, often detailing the management, control, and direction of the corporation's affairs.