Margo has just opened a new clothing store. She can't afford to pay much over minimum wage at this point, but she plans to distribute a portion of her earnings to employees once she has paid off her start-up costs. Margo plans on using which kind of extrinsic reward?
A) merit pay
B) profit sharing
C) bonus pay
D) gainsharing

Question

Quizplus · Accepted Answer

Profit sharing is a type of extrinsic reward where employees receive a share of the company's profits, beyond their regular salary or wages. Margo's plan to distribute a portion of her earnings to employees after covering her start-up costs aligns with the concept of profit sharing.

Margo Has Just Opened a New Clothing Store