Match Each Statement with the Correct Term Below

question 17

Multiple Choice

Match each statement with the correct term below.
-IRA

• 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:

Employed Wage

The compensation or earnings received by an individual in exchange for performing work or services as an employee.

Salary Workers

Employees who are paid a fixed amount of money or salary, rather than being paid hourly.

Productivity

The measure of efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Efficiency

The extent to which resources are used in the best possible way to produce goods and services.