What type of profit-sharing plan involves the firm simply distributing a percentage of profits as profit shares to employees at regular intervals?
A)current profit-sharing
B)Lincoln incentive system
C)Jefferson incentive system
D)employee stock ownership plan

Question

Quizplus · Accepted Answer

A)There are several types of profit-sharing plans.With current profit-sharing or cash plans,employees share in a portion of the employer's profits quarterly or annually.In cash plans,the firm simply distributes a percentage of profits (usually 15% to 20%)as profit shares to employees at regular intervals.

What Type of Profit-Sharing Plan Involves the Firm Simply Distributing