Which of the following statements typifies defined contribution plans?
A. Investment risk is borne by the corporation sponsoring the plan.
B. The plans are more complex than defined benefit plans.
C. Present value factors are used to determine the annual contributions to the plan.
D. The employer's obligation is satisfied by making the periodic contribution to the plan.
Answer:D
Which of the following statements typifies defined contribution plans?
A. Investment risk is borne by the corporation sponsoring the plan. B. The plans are more complex than defined benefit plans. C. Present value factors are used to determine the annual contributions to the plan. D. The employer's obligation is satisfied by making the periodic contribution to the plan.