Profit Sharing Is a Method of Employee Compensation That

question 94

Multiple Choice

Profit sharing is a method of employee compensation that

• A)allocates an equal amount of profit reward to each manager in the organization.
• B)allows organizational profits to be divided among employees in a non-taxable status.
• C)is contingent based on the level of subunit profit generated.
• D)is used in many foreign companies but is virtually nonexistent in most U.S.organizations.

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Definitions:

Agency Law

The legal principles governing the relationship between an agent, who acts for another person (the principal), and the rights and obligations that arise from this relationship.

Business Law

A branch of law that deals with the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales.

E-Sign

E-Sign, the Electronic Signatures in Global and National Commerce Act, is a federal law that facilitates the use of electronic records and signatures in interstate and foreign commerce.

Transactions

Refers to the business activities involving the exchange of goods, services, or money between entities.