20. All of the following statements regarding characteristics of profit sharing plans are TRUE, EXCEPT: a. They must contain a specific contribution allocation formula. b. They may be used to reward employees for their efforts. c. The employer may exercise discretion over the amount contributed to the plan each year. d. Contributions must be based on actual profits. e. The maximum amount the employer may deduct on its tax return is 25% of total eligible compensation of all participants. 21. Which of the following situations would normally be covered by Workers' Compensation statues? a. An employee is injured while riding to work in an employer-provided van pool. b. An employee is injured off the work premises during his/her lunch break. c. An employee is not injured but his/her glasses are broken on the work premises. d. An employee is hit by a car on the way to fill a prescription made necessary by a work related injury. e. None of the above. 22. The Workers Compensation and Employers Liability policy a. Provides workers compensation coverage without a maximum limit b. Covers both workers compensation and employers liability subject to a $100,000 maximum c. Is often combined with the Comprehensive General Liability policy into a single contract d. Automatically covers benefits payable under any state workers compensation law e. None of the above 23. Which of the following deserves to be considered work related to qualify for workers' compensation? a. Over a minor scuffle at the company cafeteria, Sylvester was attacked by Rob. b. While on the way to office, Sylvester had an accident and sustained minor injuries. c. Being a smoker, Sylvester's bronchitis aggravated owing to dust particles inhaled at work d. Sylvester cut his arm at the lathe as the belt holding the wheel snapped owing to wear and tear. e. None of the above