Which of the Following Statements Best Describes a 401(k)plan

question 37

Multiple Choice

Which of the following statements best describes a 401(k) plan?

• A) It is an employee stock purchase plan that can provide numerous tax and other benefits for employees.
• B) It is a defined contribution pension plan funded with contributions by the participants or a combination of participant and employer contributions.
• C) It requires an employer to provide timely notice to its employees of a proposal to close a plant or to reduce its workforce permanently.
• D) It gives the administrator discretionary authority to determine eligibility for benefits or to interpret the plan.

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Definitions:

Peak Period

The time period during which the demand for a service or product is at its highest, often leading to congestion or increased prices.

Optimal Pricing Strategy

A pricing approach aimed at maximizing a company's profits or market share while considering consumer demand and competition.

Marginal Revenue Curve

A graphical representation that shows how the marginal revenue varies as the quantity of output is changed, typically downward sloping for firms facing downward sloping demand curves.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, not based on costs but on what the seller believes each customer can afford or is willing to pay.