A Type of Retirement Plan That Does Not Guarantee the Eventual

question 20

Multiple Choice

A type of retirement plan that does not guarantee the eventual pension benefit an employee will receive at retirement, but only what the employee and employer contributions to the plan will be, is called a

• A)government-sponsored plan.
• B)defined contribution pension plan.
• C)deferred profit-sharing plan.
• D)retirement plan.
• E)defined benefit pension plan.

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Definitions:

Ownership

The legal right or state of having control over something, such as property or a business.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically for the financing of accounts receivable and inventories.

Short-Term Financing

Funding obtained for a period of one year or less, used to cover immediate needs such as working capital requirements.

Minimum Denomination

The smallest unit of value in which a security or financial instrument can be issued or traded.