Profit sharing involves awarding pay:
A)that becomes part of employees' base pay,in a manner similar to merit pay.
B)in order to discourage employees from thinking like owners.
C)that is a percentage of the organization's profits.
D)based on individual performance.
E)all of the abovE.

Question

Quizplus · Accepted Answer

Profit sharing typically involves awarding a percentage of the organization's profits to employees. This is done in order to provide an incentive for employees to think like owners, since their compensation is tied to the success of the organization. Profit sharing is typically not tied to individual performance, and is usually a separate payment from base pay or merit pay.

Profit Sharing Involves Awarding Pay