Which of the Following Statements Is TRUE of a Profit-Sharing

question 61

Multiple Choice

Which of the following statements is TRUE of a profit-sharing plan?

• A) Under a profit-sharing plan, wage increases provided to the workers are based on the consumer price index.
• B) Under a profit-sharing plan, the wages paid to workers are based on the number of hours they work over the required time.
• C) Profit-sharing plans tend to increase waste and decrease efficiency.
• D) Under a profit sharing plan, employees receive a lump-sum payment in addition to their regular wages based on sales levels.

---

Definitions:

Task Identity

The degree to which a job requires completing a whole, identifiable piece of work from start to finish with a visible outcome.

Group-Based Work Techniques

Strategies that utilize the dynamics of a group to accomplish tasks more effectively and efficiently than individual efforts alone.

Enhancing Communication

The process of improving the exchange of information between individuals or groups through various techniques and technologies.

Increasing Synergy

Efforts to enhance the cooperative interaction among groups or individuals that results in a greater combined effect than the sum of their separate effects.