A ____ plan allows a firm to know with certainty the amount of funds to contribute. The ____ plan allows a firm to know with certainty the amount of benefits that must be provided.
A) defined-benefit; defined-benefit
B) defined-contribution; defined-contribution
C) defined-contribution; defined-benefit
D) defined-benefit; defined-contribution

Question

Quizplus · Accepted Answer

A defined-contribution plan specifies the amount a firm contributes to the employee's retirement fund, while a defined-benefit plan specifies the amount of benefits the employee will receive upon retirement.

A ____ Plan Allows a Firm to Know with Certainty