Mike just started working for a company that maintains a defined benefit retirement plan. if mike terminates his employment within the first two years, he forfeits his retirement. if he stays for three years, he will be entitled to receive 20% of the funds provided to him in the account. if he is employed with the company for 6 years, he will be entitled to receive 80% of the funds.

what type of vesting schedule is used at mike's company?

According to the Mike´s company benefits, the vesting schedule used is graded.

Explanation:

A vesting schedule is a benefit program provided by a company to encourage its employees´ loyalty through providing them unconditioned property rights over their retirement funds and/or shares after a certain labored period.

This program is detailed through percentages that are stablished according to the set types of vesting periods terms as follows:

1. Graded vesting schedule which increasingly vests over the determined worked time.

2. Cliff vesting schedule which after a employees´specific time working enables him/her to full property of his/her assets.

But if the employees´ pre-stablished working period is not fullfilled the company is not required to meet the vesting schedule originally set and could buy back shares.

Companies and employees validate this agreement writing a vesting certificate or letter which will ensure that the transfer will be made from part to part accordingly.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: