Gainsharing Is an Incentive Plan That ________

question 28

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 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)provides tax advantages for employees by deferring income taxes, often until the employee retires

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Definitions:

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Truck Drivers

Individuals who operate trucks to transport goods and materials from one location to another.

Labor Union

An organization formed by workers to protect their rights, improve working conditions, and negotiate wages and benefits with employers.

Union Shop

A workplace where employees are not required to join the union prior to being hired, but must join soon after they start their employment.