In which type of incentive plan does an employer pay special sums based on the organization's net income over a specified period?
A)profit sharing plan
B)merit raises plan
C)gainsharing plan
D)individual bonus plan

Question

Quizplus · Accepted Answer

In a profit sharing plan, employees receive a portion of the company's profits over a specified period. The amount paid to each employee is usually based on a percentage of their salary or wages. This type of incentive plan aligns employee interests with the company's profitability and can motivate employees to work harder and be more productive.

In Which Type of Incentive Plan Does an Employer Pay