XYZ Company pays a portion of company profits to its employees.The management offers this incentive plan as one kind of retirement program.What kind of companywide incentive plan does XYZ Co.offer?
A)employee stock ownership plan
B)deferred profit sharing plan
C)current profit sharing plan
D)employee stock option plan

Question

Quizplus · Accepted Answer

XYZ Company offers a deferred profit sharing plan as an incentive plan to its employees, where a portion of the company profits is paid out as a retirement benefit. This type of plan allows employees to defer receiving the profits until they retire, which encourages long-term commitment to the company. Option A, employee stock ownership plan, would involve the company giving employees stock in the company, which is not mentioned. Option C, current profit sharing plan, would involve distributing profits to employees annually, rather than as a retirement benefit. Option D, employee stock option plan, would involve giving employees the option to purchase company stock at a discounted rate, which is not mentioned.

XYZ Company Pays a Portion of Company Profits to Its