Which of the Following Statements Typifies Defined Contribution Plans

question 218

Multiple Choice

Which of the following statements typifies defined contribution plans?

• A) Investment risk is borne by the corporation sponsoring the plan.
• B) The plans are more complex than defined benefit plans.
• C) Present value factors are used to determine the annual contributions to the plan.
• D) The employer's obligation is satisfied by making the periodic contribution to the plan.

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Definitions:

Gravely Ill

A state of severe health condition that poses a threat to life or long-term well-being, often requiring intensive medical care.

Summary Jury Trial

An abbreviated trial that leads to a nonbinding jury verdict.

Nonbinding Verdict

A trial result which does not have the legal force to compel the parties to accept its terms, often used in mock trials or as advisory opinions.

Neutral Third Party

An unbiased individual or entity brought into a dispute to help negotiate or decide on a resolution without any vested interest in the outcome.