In a deferred profit-sharing plan, a firm:
A)contributes an age-weighted share of profits to employee funds.
B)pays dividends to employees an year after realizing the profits.
C)pays a small part of the profits along with salaries.
D)puts part of its profits in trust for the benefit of employees.
E)provides and experience-based share of profits to employees.

Question

Quizplus · Accepted Answer

In a deferred profit-sharing plan, a firm puts part of its profits into a trust for the benefit of employees, typically to be paid out upon retirement, termination, or after a set period of time, making option D correct.

In a Deferred Profit-Sharing Plan, a Firm