All of the following are potential disadvantages to employees covered by a money-purchase pension plan EXCEPT
A) The contribution rate by the employer is uncertain.
B) The retirement benefit can only be estimated in advance of retirement.
C) The benefit formula may produce an inadequate benefit if an employee enters the plan at an older age.
D) The investment losses are borne by the employees.
Answer: A
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An investment vehicle that adjusts asset weights over time is an asset allocation mutual fund
Indicate whether the statement is true or false.
Charles owns 1,000 shares of stock in Temperan, Inc Charles wants to obtain corporate records including the corporation's minute book and accounting records. Under the Model Act, Charles is entitled to this information if he requests it in good faith and
a. he has a proper purpose. b. he owns at least 1 percent of the company or $2,000 of stock. c. he is an employee of Temperan. d. he is a controlling shareholder.
The presence of fixed operating costs is known as _____.
A. financial leverage B. operating leverage C. beta risk D. market risk E. firm-specific risk
How does the separation of ownership and control in public stock companies present a problem? Provide an example of this problem from your reading in this class, your reading outside of class, or your own experience.
What will be an ideal response?