Which of the Following Are True with Respect to a Simplified

question 11

Multiple Choice

Which of the following are true with respect to a simplified employee pension SEP plan?

• A) An SEP plan combines the simplicity of a 401k with a generous contribution limit of a formal pension plan
• B) An SEP plan allows employers to use IRAs to build tax-sheltered retirement funds for themselves and their employees at a nominal cost
• C) An SEP plan minimizes the employer's record-keeping function
• D) A and B
• E) B and C

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Definitions:

Oligopoly

A market structure characterized by a small number of firms dominating the market, leading to limited competition.

Monopoly

A market structure characterized by a single seller dominating the entire market for a particular good or service.

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market, including high startup costs, regulatory requirements, and established brand loyalty.

Substitute Products

Goods or services that can be used in place of another product to satisfy the same need or demand.