Which of the Following Is a Difference Between a Profit-Sharing

question 60

Multiple Choice

Which of the following is a difference between a profit-sharing plan and an employee ownership plan?

• A)Unlike an ownership plan, base pay is not reduced when a profit-sharing plan in introduced.
• B)Ownership focuses on the success of the organization as a whole unlike profit-sharing.
• C)Profit sharing plans promote individual competition whereas ownership plans promote group competition.
• D)The link between pay and performance is less obvious under ownership than under profit sharing.
• E)Ownership plans promote individual competition whereas profit-sharing plans promote group competition.

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Definitions:

Economic Thought

The progression and development of ideas and theories about how economies operate, evolving over time from ancient to modern paradigms.

Classical Economics

An economic theory advocating for minimal government intervention in the market, emphasizing free-markets and the idea that markets naturally tend towards equilibrium.

Mainstream Economics

The body of economic thought and analysis that is widely accepted and taught across major universities, focusing largely on microeconomics and macroeconomics theories.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, starting in the United States.