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Which one of the following statements is NOT correct? a. A company which adopts a profit-sharing plan is required to make annual contributions to the

Which one of the following statements is NOT correct?

a. A company which adopts a profit-sharing plan is required to make annual contributions to the plan.

b. Profit-sharing plans fall under the broad category of defined contribution plans.

c. The maximum tax-deductible employer contribution to a profit-sharing plan is 25% of covered compensation.

d. Profit-sharing plans are best suited for companies which have unstable cash flows.

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