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:

Vote Determination

The process of deciding the outcome of an election or decision by counting and comparing the votes cast.

Profit Maximization

Profit maximization is the process or objective of adjusting production and sales to achieve the highest possible profit levels under given conditions.

Production Function

An equation or formula that describes the relationship between the inputs used in production and the output of goods or services.

Output

The total amount of goods or services produced by a company, industry, or economy within a given period.