Which of the Following Statements Is True Regarding a Defined

question 47

Multiple Choice

Which of the following statements is true regarding a defined contribution pension plan?

• A) The pension benefits to be received by the employee during retirement are defined in the plan.
• B) Defined contribution plans have the more complex accounting issues than defined benefit plans.
• C) Defined contribution plans do not define the required benefits that must be paid to retired employees.
• D) Employers that use defined contribution plans are assuming more risks than employers that use defined benefit plans.

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Definitions:

Self-fulfilling Prophecy

A belief or expectation that influences actions in a way that causes the belief to become true.

Stereotype Threat

The risk of confirming negative stereotypes about one's social group, which can hinder performance in activities related to those stereotypes.

Fundamental Attribution Error

The tendency to overestimate the influence of personality and underestimate the influence of situational factors in explaining other people's behavior.

Focus-of-Attention Bias

The tendency to pay more attention to certain stimuli or aspects of the environment over others, often affecting judgments and decisions.