Which One of the Following Statements Best Describes Profit Sharing

question 18

Multiple Choice

Which one of the following statements best describes profit sharing?

• A) It is an equal division of all revenues among workers.
• B) It ties pay to the performance of individuals.
• C) It is a program that donates profits to the poor.
• D) It provides a system by which workers receive a share of the firm's profits.
• E) It discourages free-riding among workers.

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Definitions:

Federal Government

The national or central government of a federated state, which shares sovereignty with its constituent units.

Commerce Clause

A provision in the U.S. Constitution that grants Congress the power to regulate commerce with foreign nations, and among the several states, and with the Indian tribes.

Growth of National Power

The increase in strength and influence of a nation’s government over time, often in terms of political, economic, or military capacity.

U.S. Constitution

The foundational document of the United States, outlining the framework of government, rights of citizens, and laws of the land.