An employee stock ownership plan (ESOP) is a defined contribution plan that may provide the employer with which of the following advantages?

I.Increased corporate cash flow.

II. The ability to borrow money to purchase corporate stock.

III. A market for employer stock.

IV.Financial resources to expand the business.

A.I, II, III, and IV

B.III and IV

C.I and II

D.I, and II, and III

Which of the following is(are) a permitted vesting schedule for a SIMPLE 401(k)?

I.3-year cliff

II.2-to-6-year graded

III. 100% immediate vesting

IV.3-to-7-year graded

A. III only

B.IV only

C.I, II, and III

D. I, II, III, and IV

A qualified plan is

I.a company-sponsored retirement plan with benefits guaranteed by the Employee Retirement Income Security Act (ERISA).

II.a tax-efficient way to save for retirement.

III.only applicable for firms with 50 or more employees.

IV.considered a plan that benefits highly compensated employees only.

A.II only

B.I and III

C.II and IV

D.II, III, and IV

Which of the following are minimum coverage tests for qualified retirement plans?

I.Nondiscrimination test

II.Average benefits percentage test

III.Ratio test

IV.Maximum compensation test

A.II, III and IV

B.II and III

C.I, II and III

D.I and II

Several years ago, Greener Grass Company implemented a traditional defined benefit plan. According to the plan document, the employer must contribute an annual amount that will provide the employees with a specified benefit at retirement. Which of the following events would be expected to decrease the employer's annual contribution to a traditional defined benefit pension plan using a percentage for each year of service benefit formula?

I.Inflation is higher than expected.

II.Benefits are cost of living adjusted.

III.Forfeitures are higher than anticipated.

IV.The investment returns of the plan are greater than expected.

A.III and IV

B.II and IV

C.II, III and IV

D.I and III