Which Statement Does NOT Accurately Describe a Profit-Sharing Plan

question 39

Multiple Choice

Which statement does NOT accurately describe a profit-sharing plan?

• A) For motivational reasons,fixed formula profit-sharing plans are recommended.
• B) Stock bonus plans provide employees with the right to purchase shares in the future at a fixed price.
• C) Deciding the split is an important issue in gain-sharing plans.
• D) A key issue in designing profit-sharing plans is the form of the bonus payout.

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Definitions:

Moral Development

The process through which individuals grow in their understanding of morals, ethical behavior, and the reasoning behind their own choices regarding right and wrong.

Postconventional

A stage of moral development where individuals make decisions based on internal principles and values, rather than conforming to societal norms.

Conventional

Referring to ideas, methods, or standards that are widely accepted and practiced within a society or culture.

Preconventional

A level of moral development where individuals' decision-making is based on avoiding punishment or seeking personal gain.