Which Variable Is NOT Used to Determine the Income Level

question 43

Multiple Choice

Which variable is NOT used to determine the income level provided to employees upon retirement under a "defined benefit program"?

• A) some variable (percentage)of the average income over a certain period of time,usually three to five years
• B) the company's profit level over a period of three to five years
• C) employees' years of service
• D) employees' salary level

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Definitions:

Par Value

A nominal value assigned to a security by the issuer, often used to determine the minimum price of shares issued by a corporation.

Fair Value

The trading price of an asset or the funding needed to transfer a liability in a well-coordinated market move at the assessment point.

Voting Shares

Shares that give the shareholder the right to vote on important issues such as electing directors and approving mergers.