Which of the Following Is a True Statement Regarding SIMPLE

question 35

Multiple Choice

Which of the following is a true statement regarding SIMPLE IRAs?

• A)SIMPLE IRAS require employees to make contributions each month.
• B)Employer contributions to SIMPLE IRAS are not tax deductible.
• C)Employers usually handle the IRS paperwork for SIMPLE IRAs.
• D)SIMPLE IRAs have low administrative costs.

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Definitions:

Sensitivity Analysis

A financial modeling tool used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions.

Decision Tree Analysis

A graphical technique used for decision-making and risk management, representing different courses of action and their possible outcomes.

Cost Of Capital

The cost of capital represents the required return necessary to make a capital budgeting project, such as building a new factory, worthwhile.

Pure Play

A company that focuses exclusively on a single product or service area.