The purpose of a profit-sharing plan is to
A)allow workers to contribute specific knowledge to improving the organization.
B)give employees the opportunity to increase their earnings.
C)enable workers to share in labor cost savings.
D)instill commitment to the employee's immediate work group.

Question

Quizplus · Accepted Answer

The purpose of a profit-sharing plan is to give employees the opportunity to increase their earnings. This is typically achieved by distributing a portion of the company's profits among eligible employees. While profit-sharing plans may also help instill commitment and encourage teamwork, these are secondary benefits to the primary goal of increasing employee compensation.

The Purpose of a Profit-Sharing Plan Is to