All of the Following Statements Are True Regarding Profit Sharing

question 13

Multiple Choice

All of the following statements are true regarding profit sharing plans EXCEPT:

• A)they are often used as a means of reducing turnover.
• B)they have been criticized as being remote and unrelated to performance.
• C)they were designed to motivate cost savings.
• D)the group that saves the most money receives the bonus.
• E)they provide long-term incentives.

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Definitions:

Audits

Systematic examinations and verifications of a company's financial and accounting records and operations.

Nonmaterial Way

A term often related to philosophical, spiritual or cultural practices that involves something intangible, not based on material or physical objects or needs.

Liability

The condition of having legal accountability, especially regarding debts or legal duties.

Contractually Agreed Upon Fee

A fee that parties have explicitly decided upon within a contract for services or goods.