A weakness of profit-sharing plans is that employees do not have total control over the profitability of the organization.

Question

Quizplus · Accepted Answer

Profit-sharing plans provide a portion of the company's profits to employees, but the ultimate profitability of the organization is not entirely in the hands of employees. External factors such as market conditions, competition, and economic trends can significantly impact a company's profitability, which can have an effect on the amount of profit-sharing that employees receive.

A Weakness of Profit-Sharing Plans Is That Employees Do Not