Question

Evan is the human resource manager of a one-year-old technology company. The founder wants him to set up a retirement plan. Evan thinks the best approach during the company's early years would be a defined-contribution plan funded with profit-sharing dollars. Which statement best supports Evan's idea?

A) The plan makes employees part-owners of the company.

B) The Pension Benefit Guarantee Corporation will guarantee a basic benefit.

C) Employees can buy an annuity with the contributions when they retire.

D) The amount employees contribute is not taxed when they contribute it.

E) Contributing a share of profits gives the company more flexibility as it establishes itself.

Answer

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