The course: Risk Management & Insurance

1. The cost of employee benefits represents, on average, ____ of private employers' total compensation costs.

A. 20% - 25% B. 5% - 10% C. 10% - 15% D. 35% - 40%

2. Monica works for a firm that has a pension plan. Her employer's contribution varies from year to year depending on how well the firm is doing. For example, in 2007 when the firm had net income of $1,000,000, it contributed $2,000 to her pension. In 2008 when the firm had a net income of $2,000,000, they contributed $4,000 to her pension, What kind of plan does Monica have?

A. Money purchase plan B. 401(k) plan C. ESOP D. Profit-sharing plan