Gainsharing Is a Plan in Which Both Employees and the Organization

question 101

True/False

Gainsharing is a plan in which both employees and the organization share the financial gains according to a predetermined formula that is focused on improvements in productivity.

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Definitions:

Investing Activities

are financial transactions related to the acquisition or sale of long-term assets and investments outside the normal scope of business operations.

Financing Activities

Activities that result in changes in the size and composition of the contributed equity and borrowings of the entity, as shown in its cash flow statement.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a predetermined call price.

Redeemed

Refers to the repayment or buyback of securities, such as bonds or preferred stocks, before their maturity.