Which of the Following Is a Disadvantage of Profit Sharing

question 43

Multiple Choice

Which of the following is a disadvantage of profit sharing plans?

• A) Employees must trust that management will accurately disclose financial and profit information.
• B) Employees are taxed heavily on the income that they generate from profit sharing plans.
• C) Employees cannot access the funds that they receive from profit sharing plans for up to three years.
• D) Employers get little or no rebate on income tax for choosing profit sharing plans.

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Definitions:

Promotions

The act of elevating someone to a higher position or rank, often accompanied by increased responsibilities and benefits.

Intellectual Flexibility

The ability to adapt one's thinking and strategies to new situations, challenges, and perspectives, often involving open-mindedness and creativity.

Educated

Having acquired knowledge, skills, and learning through formal schooling or self-directed study.

Wealthier

Possessing a higher amount of financial resources, assets, or material wealth compared to others.