Profit sharing provides a more direct work incentive in small firms than in large ones.

Name: Profit sharing provides a more direct work incentive in small firms than in large ones.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In small firms, profit sharing can have a greater impact on individual compensation, whereas in large firms, the effects may be more diffused due to the size and complexity of the organization. Therefore, profit sharing may provide a more direct work incentive in small firms compared to large ones.

Profit Sharing Provides a More Direct Work Incentive in Small