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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