Gainsharing Plans Differ from Profit-Sharing Plans in That

question 45

Multiple Choice

Gainsharing plans differ from profit-sharing plans in that

• A)gainsharing plans use organization-wide performance parameters.
• B)gainsharing plans distribute payouts more frequently.
• C)gainsharing plans make lump sum payments.
• D)gainsharing plans can be attached to all types of jobs in the organization.
• E)gainsharing plans discourage pursuit of broader goals of the group.

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Definitions:

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage of the principal amount.

Principal

This term refers to the original sum of money borrowed in a loan or the initial amount of investment before earnings or losses.

Expansionary Gap

A situation where the output of an economy is greater than the full employment output, often leading to inflation.