Which of the Following Is a Difference Between Gainsharing and Profit-Sharing

question 7

Multiple Choice

Which of the following is a difference between gainsharing and profit-sharing incentive systems?

• A) Gainsharing is a group incentive system, whereas profit sharing is an individual incentive system.
• B) Gainsharing involves distributing savings among all the employees in a company, whereas profit sharing involves distributing savings among the members of a specific team.
• C) Gainsharing involves sharing cost savings from productivity improvements with employees, whereas profit sharing involves distributing a portion of a company's gains to all employees.
• D) Gainsharing is independent of a team's performance, whereas profit sharing is specific to the contributions of a work group.

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Definitions:

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Respirator

A device designed to protect the wearer from inhaling harmful dusts, fumes, vapors, or gases.