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.

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Definitions:

Made in the U.S.A.

A label indicating that a product has been manufactured or substantially transformed in the United States.

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Rescind Contract

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