Which of the Following Statements Is True Regarding Gainsharing

question 8

Multiple Choice

Which of the following statements is true regarding gainsharing?

• A)Gainsharing focuses on productivity gains rather than profits.
• B)Gainsharing involves paying employees based on the number of new skills acquired by them in a specific time period.
• C)Gainsharing does not distribute profits, only gains in profits.
• D)Employees working under gainsharing plans have a greater feeling of psychological ownership.
• E)Gain sharing encourages social loafing.

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Definitions:

North Korea

An East Asian country officially known as the Democratic People's Republic of Korea, noted for its centralized economy and autocratic government.

Specialization

The use of the resources of an individual, a firm, a region, or a nation to concentrate production on one or a small number of goods and services.

Production

The act of creating goods or services using labor, equipment, and natural resources.

Coincidence-of-wants

A situation in barter economies where two parties each have something the other wants, facilitating a direct exchange without the need for money.