The XYZ Company pays a portion of company profits to its employees.The management offers this incentive plan as one kind of retirement program.Which kind of companywide incentive plan does XYZ Co.offer?

Question

Quizplus · Accepted Answer

The description of the companywide incentive plan indicates that the employees receive a portion of the company's profits, which is a characteristic of a profit-sharing plan. Since the description mentions that it is one kind of retirement program, the most appropriate plan would be deferred profit sharing, where the payments are made to a retirement account, and the employees receive the funds at retirement age. Options A, C, and D are not the best choices because they either involve ownership of the company's stocks or granting the right to buy stocks at a specific price, which is not mentioned in the description of the plan offered by XYZ Company.

The XYZ Company Pays a Portion of Company Profits to Its