The Distribution of a Portion of a Company's Earnings to Its

question 62

Multiple Choice

The distribution of a portion of a company's earnings to its employees will motivate them to focus more on efficiency and productivity.Which of the following would strengthen this argument?

• A) It helps create job opportunities.
• B) It helps avoid competition among employees.
• C) Employees spend long hours working.
• D) Employees avoid taking days off when they are given a share of profit.
• E) Employees consider the organization's goals along with their personal interests.

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Definitions:

Balance Sheet

A document that provides a snapshot of an organization's financial status by listing its assets, obligations, and the equity of its shareholders at a given time.

Account Balances

The amount of money in a financial repository at any given moment, which can change with deposits and withdrawals.

Deposits

Sums of money placed into an account in a bank or other financial institution, typically earning interest and used for saving or as collateral.

Fully Depreciated

An asset's state when it has amortized or written off its entire initial cost over its useful life, leaving it with a book value of zero or minimal value.