A Gainsharing Plan

question 60

Multiple Choice

A gainsharing plan:

• A) rewards employees with company stock.
• B) encourages individuals to work independently rather than rely on team members.
• C) rewards employees for the status they have gained in the organization.
• D) does all of the above.
• E) does none of the above.

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Definitions:

Dissolve

To formally end or terminate an entity, such as a corporation, partnership, or marriage, through legal means.

Outstanding Common Shares

The total number of common shares of a corporation that are issued and currently held by shareholders.

Total Equity

The total net value of a company, calculated as the difference between its total assets and total liabilities.

Excess Liquidity

The situation in which an individual or entity has more liquid assets available than is necessary for immediate operational needs.