Which of the Following Is True Regarding a Gain-Sharing Plan

question 25

Multiple Choice

Which of the following is true regarding a gain-sharing plan?

• A)It prevents union members from sharing the wealth.
• B)It creates difficulty in maintaining employment levels in marginal organizations.
• C)It becomes ineffective when union members participate in plan development.
• D)Not all unions would be in favor of this type of plan.

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Definitions:

Market Value

The present cost at which a service or asset is available for purchasing or selling on the open market.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the market capitalization remains the same.

Par Value

The face value of a bond or stock as stated by the issuing company, which may or may not reflect the security's market value.

Stock Split

A corporate action to increase the number of outstanding shares while reducing the price per share, keeping the overall market capitalization the same.