Profit-Sharing Plans May Be Beneficial When Used To

question 96

Multiple Choice

Profit-sharing plans may be beneficial when used to:

• A)reduce the impact of corporate income taxes.
• B)improve managers' incentives for effective decision making.
• C)divert financial resources from shareholders.
• D)reduce the payment of cash dividends.

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Definitions:

Warranty

An express or implied promise by a seller that specific goods to be sold meet certain criteria, or standards of performance, on which the buyer may rely.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.

Disclaim Warranties

A statement made by a seller that specifies they are not providing guarantees about the condition or quality of goods being sold.

UCC

The Uniform Commercial Code, a comprehensive set of statutes designed to provide uniformity and predictability in commercial transactions across the United States.