When is profit sharing most important to a company?
A) When the company's share value is very high.
B) When the employees are unionized.
C) When the company is privately owned.
D) When the firm has a high need for cooperation.

Question

Quizplus · Accepted Answer

Profit sharing is most important to a company when the firm has a high need for cooperation among its employees. This is because profit sharing can improve employee motivation, increase job satisfaction, and boost cooperation among employees. In turn, this can lead to greater productivity, higher-quality work, and better overall business performance. Profit sharing may be less important when share value is high or when the company is privately owned, as these factors may not have a direct impact on employee motivation and cooperation. Profit sharing may also be less relevant when employees are unionized, as unions often negotiate other forms of compensation and benefits for their members.

When Is Profit Sharing Most Important to a Company