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:

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Angle of Repose

The steepest angle at which loose material, like sand or gravel, can be piled without slumping, determined by the frictional contact between the particles.

Orientation of Fractures

describes the spatial alignment or direction of cracks or breaks in geological formations.

Water

Water is a chemical compound, H2O, vital for all known forms of life, existing in three phases (solid, liquid, gas), and plays a crucial role in the Earth's climate and weather.