In some countries, such as India, profit sharing is mandated by law. Thus, companies have to distribute some of their profits to the employees. What is the key reason for this requirement?

Question

Quizplus · Accepted Answer

The key reason for mandating profit sharing in some countries is to allow for a redistribution of wealth at the firm level, ensuring that employees benefit directly from the company's success, which can lead to a more equitable economic environment.

In Some Countries, Such as India, Profit Sharing Is Mandated