Profit-Sharing Is of Little Use as an Incentive in Small

question 87

True/False

Profit-sharing is of little use as an incentive in small companies because profits are often too small to share.

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Definitions:

Halo Effect

A cognitive bias in which an observer's overall impression of a person, company, brand, or product influences the observer's feelings and thoughts about that entity's character or properties.

Primacy Effect

The tendency for individuals to remember items at the beginning of a list better than items in the middle or at the end.

Matching Effect

A phenomenon where advertisements are more effective when their content is aligned with the mood or the mindset of the audience.

Mere-Exposure Effect

A psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them.