Which of the following statements is false?
A) Profit sharing redistributes profits back to the workers.
B) Bonuses are frequently linked to performance.
C) Bonuses are paid in addition to base salary.
D) Free-riding can result from a compensation scheme that gives competitive individual bonuses.
E) Free-riding can result from profit sharing.

Question

Quizplus · Accepted Answer

Free-riding is less likely to occur with competitive individual bonuses because these bonuses are based on individual performance, which incentivizes each worker to perform well. Free-riding is more associated with profit sharing, where individual contributions may be less directly tied to rewards.

Which of the Following Statements Is False