Which of the Following Is a Drawback of Using Profit

question 51

Multiple Choice

Which of the following is a drawback of using profit sharing?

• A)It promotes individual goals rather than organizational goals.
• B)It promotes competition between work groups.
• C)It increases the probability of individual competition.
• D)It fails to make labor costs more variable.
• E)It runs the risk of contributing to employee dissatisfaction.

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Definitions:

Monopoly Power

The ability of a firm to control the market price and output of a product because it is the sole supplier in a market with high barriers to entry.

Sherman Antitrust Act

A landmark federal statute passed in the late 19th century to combat anticompetitive practices, reduce market monopolies, and maintain economic competition.

Standard Oil

A former American oil producing, transporting, refining, and marketing company established by John D. Rockefeller and partners in 1870, which came to dominate the oil industry and was later broken up in 1911 due to antitrust laws.

Tit-for-Tat Strategy

A strategy in game theory where a player responds to an opponent's action with equivalent retaliation, encouraging cooperation or deterring defection in repeated interactions.