Financial Planner

Answer: D - Owners, wives, and employees are a part of a control group in a company. Control groups are when an employer owns 80 percent or more of another entity or when five or few owners own 80 percent of both entities, stock owned by spouses and children under age 21 are aggregated for these test. Rules are designed to prevent employers form creating multiple entities for the purpose of separating highly compensated and non-highly compensated employees into two or more different companies and providing benefits to just the highly compensated employees in one of those companies.