__________is when organizational profits are distributed to all employees.
A) Long-term incentive dividends
B) Short-term incentive dividends
C) Profit sharing
D) Stock options

Question

Quizplus · Accepted Answer

Profit sharing is the distribution of organizational profits to all employees, based on a pre-determined formula. This can be an effective way to motivate employees to work towards the collective goal of maximizing company profits as they will directly benefit from the organization's success. Long-term and short-term incentive dividends are not the same as profit sharing as they are typically given only to select individuals who have achieved specific goals, rather than being distributed equally among all employees. Stock options provide employees with the opportunity to purchase company stock at a certain price, but do not directly distribute profits to all employees.

__________Is When Organizational Profits Are Distributed to All Employees