The Benefits Distributed from Profit Sharing Plans Are Usually Allocated

question 37

Multiple Choice

The benefits distributed from profit sharing plans are usually allocated using one of these three ways.(Profit Sharing Plans)

• A)Lump sum payments,graduated payments,proportional payments based on their contributions to profits
• B)Equal payments,proportional payments based on salary,lump sum payments,graduated payments
• C)Equal payments,proportional payments based on salary,proportional payments based on their contributions to profits
• D)Equal payments based on contributions to profits,equal payments based on salary,lump sum payments

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Definitions:

Close Corporations

Businesses characterized by a small number of shareholders, no public shares, and often more relaxed corporate governance standards.

Flexibility

The quality of being adaptable or variable in order to accommodate different circumstances or needs.

Rules of Operation

refer to established procedures or guidelines that govern the functioning or conduct of an organization, system, or process.

Close Corporation

A business with a limited number of shareholders and no public shares, often operated more informally than public corporations but with legal protections.