Identify a True Statement About Defined Benefit (DB) Plans

question 12

Multiple Choice

Identify a true statement about defined benefit (DB) plans.

• A) They impose stiff financial penalties on workers who fail to retire "on time."
• B) In DB plans, a worker's pension increases with additional years.
• C) In DB plans, workers get the highest tax advantages compared with other pension plans.
• D) They are the most popular kind of pension plan for older people.

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Definitions:

Ethical Conduct

Behavior that is consistent with principles of moral and ethical standards in personal and professional activities.

Relational Transparency

A leadership behavior characterized by being open, honest, and candid in relations with others.

Servant Leadership

A leadership philosophy which emphasizes the leader's role as serving the needs of others first.

Kohlberg's Model

A theory outlining six stages of moral development, progressing from obedience and punishment orientation to principled conscience.