What Is Profit Sharing

question 100

Multiple Choice

What is profit sharing?

• A) A gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard.
• B) An incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary.
• C) A group incentive program that measures improvements in productivity and effectiveness and distributes a portion of profit to employees.
• D) A combination of performance measures directed toward the company's profit and used as the basis for awarding incentive pay.
• E) An incentive plan where a percentage of the previous year's profits is provided to employees as a part of salary.