This Formula for Calculating Profit Sharing Awards Gives the Employees

question 1

Multiple Choice

This formula for calculating profit sharing awards gives the employees a higher percentage of the profits as the profits increase.

• A)fluctuating first-dollar-of-profits
• B)differed first-dollar-of-profits
• C)graduated first-dollar-of-profits
• D)fixed first-dollar-of-profits

---

Definitions:

Shareholders

Individuals or entities that own shares in a company, giving them ownership stakes and possibly the right to vote on corporate matters.

Security Agreement

A contract that grants a lender a security interest in specified assets of the borrower, serving as collateral for a loan.

Vicariously Liable

A legal principle where one party is held responsible for the actions or omissions of another party, typically in employment relationships.

Secured Creditor

A lender or creditor that has the right to claim specific assets of the borrower if the debtor fails to pay back the owed money.