The Scanlon Plan Is an Example of

question 25

Multiple Choice

The Scanlon plan is an example of

• A)profit sharing.
• B)gainsharing.
• C)a merit pay plan.
• D)an individual incentive plan.

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Definitions:

Preferred Stock

represents a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually with fixed dividends.

Earnings Per Share

A financial ratio that measures the amount of profit attributed to each outstanding share of common stock, indicating a company's profitability on a per-share basis.

Net Income

The total earnings of a company after subtracting all expenses from its total revenue, representing the profit or loss in a financial period.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities.