What Is the Primary Difference Between Profit-Sharing and Gain-Sharing Plans

question 56

Multiple Choice

What is the primary difference between profit-sharing and gain-sharing plans?

• A) Profit-sharing plans provide one-time payments based on performance accomplishments, whereas gain-sharing plans provide weekly and/or monthly payments.
• B) Profit-sharing plans pay increases in proportion to performance contributions, whereas gain-sharing plans pay in proportion to seniority and experience.
• C) Profit-sharing plans are most common at the executive level, whereas gain-sharing plans are most common at the lower levels.
• D) Profit-sharing plans are monetary forms of compensation, whereas gain-sharing plans are nonmonetary.
• E) Profit-sharing plans distribute to employees a proportion of net profits earned by the organization, whereas gain-sharing plans allow employees to share gains realized by their efforts.

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Definitions:

Foot-In-The-Door

A persuasion technique where a person is first asked to agree to a small request, which increases the likelihood of agreeing to a larger request later.

Fundraising

The process of gathering voluntary contributions of money or other resources for the benefit of an organization, cause, or individual.

Donation

The act of giving something voluntarily without expecting compensation, typically for charitable purposes or to benefit a particular cause.

Cultural Truisms

Beliefs or propositions that are widely accepted within a culture, often without question due to their perceived self-evident truth.