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:

Between-group Estimate

Statistical measurements that compare differences in characteristics or outcomes between distinct groups.

Degrees of Freedom

The number of independent values or quantities that can be assigned to a statistical distribution.

F Statistic

A ratio used in ANOVA tests to determine if the means between two or more groups are significantly different.

Null Hypotheses

Postulates that assume no variance between specified variables in a study, used for statistical testing.