Profit-sharing is a motivation and incentive system where executives receive stock options.

Question

Quizplus · Accepted Answer

Profit-sharing is a system where employees receive a share of the profits of the business which can be in the form of cash, stocks, or other forms of payment, not specifically stock options for executives. Stock options are a separate form of incentive typically offered to executives and other key employees, giving them the right to buy company stock at a future date at a predetermined price.

Profit-Sharing Is a Motivation and Incentive System Where Executives Receive