Final answer:
A standardized plan offers limited flexibility in design choices for employers, conforming to strict IRS guidelines and serving well for smaller businesses seeking simplicity. Hence, option (A) is correct.
Step-by-step explanation:
A standardized plan gives certain choices to an adopting employer, but very little flexibility to plan design. In contrast, a non-standardized plan provides more options and customizations for employers.
Standardized plans are pre-approved by the IRS and must adhere to strict guidelines, which limits the employer's ability to make alterations to meet specific needs. This can be beneficial for smaller businesses that seek the simplicity and assurance of compliance with tax laws.
In contrast, non-standardized plans offer more flexibility, allowing employers to customize certain aspects of the plan to better suit their needs as well as the needs of their employees.