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vesna_86 [32]
2 years ago
10

Pakistan State Oil - the leading oil marketing company of Pakistan, operated approved funded defined benefit pension schemes sep

arately for permanent management and non-management employees since its inception in 1976.
Recently, the Company has launched a Defined Contribution Scheme in year 2019 for its employees. This scheme allows early vesting of retirement benefits to the employees so that their accumulated pension benefit would be available on cessation of service at any time instead of waiting for superannuation/retirement age.

In view of the aforementioned, come up with at least three reasons for PSO to switch from DB to DC Scheme. Shall it going to benefit the company? Your answer should be in detail with solid justifications and arguments.
Business
1 answer:
mamaluj [8]2 years ago
3 0

The reasons for PSO to switch from DB to DC Scheme are:

  • It has gold standard for pensions.
  • They are more secure.
  • More generous than DC pensions and pay an income that increases along with inflation.

<h3>What are the reasons for a shift?</h3>

The movement from defined benefit (DB) to defined contribution (DC) pension plans is known to be one that has made workers to decide or make choices that may affect their financial resources in terms of retirement.

Therefore,   DC Scheme is more of a benefit to the employees that the company as it tends to lower an employee's taxable income.

Learn more about pensions from

brainly.com/question/10318001

#SPJ1

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2. The case says that Kayem Foods is not meeting its profit targets. Why is it difficult for this firm to make money in this mar
swat32

Companies often set target for themselves.  The reasons why it is difficult for this firm to make money is that;

  • As a result of poor demand for the products
  • It can be also be like due to the power  or prestige gained over the years by the supermarkets is depreciating.
  • This can be due to the small price margin or the price competition from other manufacturers.
  • Losses encountered via the issue of  Private Label
  • Poor marketing and advertisement strategy and poor budget allocation for it.

Kayem Foods is a very popular brand. It is known to be a 4th generation family owned business. It has it headquartered in Chelsea, MA.

It is commonly known in the world to be the biggest processed meat company that is found in New England.  They are based on natural casing, fully cooked and fresh sausage etc.

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brainly.com/question/25884013

3 0
3 years ago
Let's suppose that the demand for allergists increases in california. assuming there is a perfectly competitive market for aller
densk [106]

Let's suppose that the demand for allergists increases in California. assuming there is a perfectly competitive market for allergists in California :

Allergists from other states (or countries) could move to California.

Surgeons, hematologists, and other doctors in California could become allergists after some retraining.

More people could enter medical school, specialize in allergies, and move to California.

A competitive market is an economic term that refers to a market in which there are a large number of buyers and sellers and no single buyer or seller can influence the market. A competitive market has no barriers to entry, many buyers and sellers, and homogeneous products.

In economics, especially general equilibrium theory, perfect markets, also called atomistic markets, are defined by several idealized conditions collectively known as perfect or atomistic competition.

Learn more about competitive market here: brainly.com/question/8753703

#SPJ4

8 0
2 years ago
A trust established by your will that becomes effective upon your death is called a(n) ____________ trust.
olga2289 [7]

In most states, a will is often referred to as a "last will and testament". So any trust or transfer at death that involves will is said to be testamentary (from the testament). Choice B is a living trust - which doesn't involve death. Choices C and D can be made while a person is alive.

The answer here is A, a testamentary trust.


5 0
3 years ago
Miramar Industries manufactures two products, A and B. The manufacturing operation involves three overhead activities - producti
PolarNik [594]

Answer:

General overhead= $3.81 per direct labor hour

Explanation:

Given the following information:

General Overhead $80,000 Number of direct labor hours

Number of direct labor hours 9,000 12,000= 21,000

<u>To calculate the activity rate, we need to use the following formula:</u>

Activity rate= estimated costs / total amount of allocation rate

General Overhead= 80,000 / 21,000

General overhead= $3.81 per direct labor hour

8 0
3 years ago
Bassett Fruit Farm expects its EBIT to be $373,000 a year forever. Currently, the firm has no debt. The cost of equity is 13.2 p
julia-pushkina [17]

Answer:

The correct answer is $1,836,742.42.

Explanation:

According to the scenario, the given data are as follows:

EBIT = $373,000

Cost of equity = 13.2%

Tax rate = 35%

So, we can calculate the unlevered value of the firm by using following formula:

Unlevered value of the firm = EBIT × (1 - TAX RATE) ÷ COST OF EQUITY

By putting the value, we get

Unlevered value of the firm = $373,000 × ( 1 - 35%) ÷ 13.2%

= $373,000 × 0.65 ÷ 0.132

= $242,450 ÷ 0.132

= $1,836,742.42

6 0
3 years ago
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