Gainsharing Is an Incentive Plan That ________

question 111

Multiple Choice

Gainsharing is an incentive plan that ________.

• A) uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement
• B) 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
• 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) involves the firm simply distributing a percentage of profits as profit shares to employees at regular intervals

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Definitions:

Rarity Principle

A concept in economics and marketing suggesting that rare or scarce items are perceived as more valuable.

Plentiful Opportunities

The abundant availability or presence of options or circumstances for action or engagement.

Compliance-Gaining Technique

Strategies used to persuade or induce others to align with one's requests or directions.

Elaboration Likelihood Model

A theory suggesting two primary pathways (central and peripheral) through which persuasion occurs, based on the depth of processing.