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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