A Disadvantage to Profit-Sharing Plans Is That _______________

question 3

Multiple Choice

A disadvantage to profit-sharing plans is that _______________.

• A)it is seen as a sort of "people's capitalism"
• B)participation is limited only to management-level employees
• C)it makes an employee's compensation dependent on the performance of their employer
• D)employers are required to pay the taxes on the shares offered to employees

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Definitions:

Pledged Assets

Assets that are promised as security for the repayment of a loan.

Monetary

Relating to money or currency, particularly in terms of monetary policy or monetary economics.

Collateral

An asset offered as security for repayment of a loan, forfeitable in the event of default.

Reorganization Plan

A strategy adopted by a company to restructure its business operations, finances, or structure to enhance efficiency or recover from financial distress.