What Is a Major Problem with Profit-Sharing Plans

question 68

Multiple Choice

What is a major problem with profit-sharing plans?

• A) They increase the fixed costs of organizations.
• B) The line of sight between employee performance and organizational profits is blurred.
• C) The profits distributed to employees can be too much.
• D) There is no agreed upon procedure to determine profits.

---

Definitions:

Labor Demanded

The total amount of workers that employers in the economy want to hire at a given wage level and time period.

Labor-Force Participation

the ratio of the number of individuals who are working or actively looking for work to the total number of individuals eligible to participate in the workforce.

Bureau of Labor Statistics

An agency of the U.S. government tasked with gathering, examining, and distributing vital data concerning labor market dynamics, employment environments, and fluctuations in prices.

Unemployment Rate

The ratio of unemployed individuals in the labor force who are earnestly looking for work.