What Effect Did the Requirement to Replace the Minimum Liability

question 4

Multiple Choice

What effect did the requirement to replace the minimum liability requirement with the funded status of a pension plan have for underfunded pension plans?

• A)Return on assets decreased.
• B)There was no effect on return on assets.
• C)The debt-to-Equity ratios increased.
• D)Working capital increased.

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Definitions:

Safety Needs

Basic human requirements for security and protection, considered essential for well-being in Maslow's hierarchy of needs.

Basic Needs

Fundamental requirements necessary for individuals to achieve a minimum standard of living, including food, shelter, and security.

Ethos

The characteristic spirit of a culture, era, or community as seen in its beliefs and aspirations.

Credibility

The quality of being trusted and believed in, often achieved through consistency, honesty, and reliability.