What Is the Most Common Basis for Allocating the Profit-Sharing

question 40

Multiple Choice

What is the most common basis for allocating the profit-sharing bonus across employees in Canadian firms?

• A) seniority
• B) individual performance
• C) salary level
• D) salary level or individual performance

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Definitions:

P/E Multiple

Also known as Price-to-Earnings Ratio, it compares a company's share price to its per-share earnings, used to evaluate if a stock is over or undervalued.

EPS

EPS stands for Earnings Per Share, a financial ratio that measures the amount of a company's profit that is allocated to each individual share of its common stock.

Intrinsic Value

The actual, fundamental value of an asset, based on underlying perceptions of its true value including all aspects of the business.

ROE

ROE, or Return on Equity, measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.