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Which of the Following Statements Regarding Profit-Sharing Plans Is NOT

Question 22

Multiple Choice

Which of the following statements regarding profit-sharing plans is NOT correct?


A) Deferred profit-sharing plans (DPSPs) need to be registered with the federal government.
B) So called "top-hat" plans are often widely available to all employees, thus making them eligible for registration as a DPSP.
C) Income generated by a DPSP is tax exempt until such time as the employee cashes in the plan.
D) The majority of Canadian profit-sharing plans are cash-based plans.

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