Profit-Sharing Is of Little Use as an Incentive in Small

question 87

True/False

Profit-sharing is of little use as an incentive in small companies because profits are often too small to share.

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Definitions:

Specialize

Focusing one’s efforts in a specific domain or area of expertise, often to increase efficiency and skill.

Greater Quantity

A higher amount or number of something, usually used in reference to the production or supply of goods.

Comparative Advantage

A principle stating that if a country produces a good at a lower opportunity cost than another, it has a comparative advantage.

Opportunity Costs

The expense incurred from not selecting the subsequent preferable choice when a decision is made.