Your company just started offering a profit-sharing plan, which could increase your total compensation by as much as 25% if the company does well. This form of compensation is classified as which of the following?
A) a salary
B) an incentive
C) a benefit
D) a commission

Question

Quizplus · Accepted Answer

Profit-sharing is a form of incentive compensation, as it is designed to motivate employees to work harder and increase company profits. A salary is a fixed payment for work, a benefit is a non-cash compensation such as health insurance, and a commission is a percentage-based payment for sales.

Your Company Just Started Offering a Profit-Sharing Plan, Which Could