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:

Grades

Evaluations or ratings typically given to student assignments or performance, assessing their mastery of subject matter.

Perquisites

Benefits or privileges provided to employees in addition to their salaries, such as company cars or health insurance.

Top Management

The highest level of management in an organization, responsible for the overall direction, strategy, and success of the company.

Stock-Option Plan

A compensation strategy that offers employees the option to buy company shares at a discounted price.