In compensation plans,profit sharing:
A)is a group incentive compensation plan.
B)is focused on projected long-term performance.
C)must distribute an equal share of the profits to each employee.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Profit sharing is a group incentive compensation plan, where a portion of the profits earned by the company is distributed among the employees based on a predetermined formula. It is not necessarily focused on projected long-term performance, and it does not have to distribute an equal share of profits to each employee.

In Compensation Plans,profit Sharing