Which of the Following Is Not a Difference Between Defined

question 33

Multiple Choice

Which of the following is not a difference between defined benefit pension plans and other postretirement benefits (OPBs) ?

• A) Unlike defined benefit pension plan payments, there is no cap on the amount of OPBs benefit to be paid to participants.
• B) Unlike defined benefit pension plans, management promises OPBs payments in exchange for current services.
• C) Unlike defined benefit pension plans, employees do not accumulate additional OPBs benefits with each year of service.
• D) Unlike defined benefit pension plans, OPBs do not vest.

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Definitions:

Terms of Agreement

The conditions and stipulations determined by parties involved in a contract or agreement.

Outside Options

Alternatives available to negotiating parties if current negotiations fail, affecting their bargaining power.

Non-Strategic View

A perspective that does not involve long-term planning or consideration of competitive positioning.

Terms of Agreement

A set of conditions and stipulations agreed upon by parties entering a contract or negotiation.