Profits earned above a certain level and distributed to all employees are ________.
A) gain-sharing plans
B) profit-sharing plans
C) cafeteria plans
D) wages

Question

Quizplus · Accepted Answer

The option that describes sharing profits earned above a certain level with all employees is profit-sharing plans. Gain-sharing plans typically only distribute profits to a certain group of employees who directly contribute to increasing productivity, while cafeteria plans are a type of employee benefits program that allows them to choose between different types of benefits such as health insurance or retirement plans. Wages are the regular payments made to employees for their work, usually on an hourly or salaried basis.

Profits Earned Above a Certain Level and Distributed to All