Profit-Sharing Plans, Where Employees Receive Bonuses in Proportion to the Company's

question 142

Multiple Choice

Profit-sharing plans, where employees receive bonuses in proportion to the company's profits,

• A) reduce the principal-agent problem.
• B) are intended to reduce the number of employees who are residual claimants.
• C) eliminate shirking problems.
• D) are essentially gifts to employees and do not generate any benefit for the firm's owners.