Identify the Disadvantage of Using Profit-Sharing Plans

question 82

Multiple Choice

Identify the disadvantage of using profit-sharing plans.

• A) They cannot be used to improve the organization's performance as a whole.
• B) The employees may develop a narrow view of their roles in the organization.
• C) They cost more when the organization experiences financial difficulties.
• D) Sharing profit with the employees ultimately reduces the organization's profitability.
• E) Profit sharing is not directly linked to individual behavior.

---

Definitions:

Verbal Agreement

A contract or agreement made through spoken words rather than writing, which can be legally binding.

Specific Performance

A legal remedy requiring a party to perform their part of a contract, rather than simply paying damages for failing to do so.

Enforce Joyce's Promise

This phrase suggests taking legal or formal steps to ensure that an obligation or commitment made by someone named Joyce is fulfilled.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money.