The Scanlon Plan Is an Incentive Plan That

question 76

Multiple Choice

The Scanlon plan is an incentive plan that .

• A)involves the firm distributing total annual profits each year among employees based on their merit rating
• B)focuses on the sharing of benefits between employer and employees
• C)contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees
• D)engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company
• E)provides tax advantages for employees by deferring income taxes, often until the employee retires

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