One Argument Against Using a Profit-Sharing Scheme Is the Potential

question 7

Multiple Choice

One argument against using a profit-sharing scheme is the potential for free-riding. In this situation, free-riding refers to

• A)one firm using the same contract specifications as another firm.
• B)a worker not providing effort because his contribution to profit is very small.
• C)a worker not providing effort because he doesn't want his co-workers' wages to increase.
• D)the firm not honestly reporting its profits.
• E)profits being insensitive to worker effort because all increases in profit are returned to the workers due to the profit-sharing scheme.

---

Definitions:

Assimilation

The cognitive process of fitting new information into pre-existing cognitive schemas, perceptions, and understanding.

Accommodation

In psychology, the process by which individuals adjust their schemas (mental models) to incorporate new information.

Secure Attachment

A bond in early childhood in which the individual feels safe, cared for, and confident to explore the environment, based on consistent and responsive caregiving.

Across Cultures

Pertains to phenomena or practices that are found or applicable in multiple cultural contexts, highlighting similarities or differences among cultures.