Caterpillar Inc.distributes 2% of its company profits to employees every year. This performance plan is known as

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Quizplus · Accepted Answer

The performance plan described in the question is profit sharing plan, where a portion of the company's profits is distributed to its employees. This is different from merit pay plan, which rewards employees for their individual performance, and employee stock ownership, which allows employees to own a portion of the company's stock. Bonuses can also be given to employees for their individual or team performance, but profit sharing specifically involves a percentage of the company's profits being distributed among employees.