Which of the following is characteristic of profit sharing programs?
A)Employers are encouraged to think like employees.
B)Organizations feel the need to rely on layoffs during tough times.
C)Payments do not become part of base pay in such programs.
D)Labor costs automatically increase during difficult economic times.
E)Employees' self-interest is encouraged when using such plans.

Question

Quizplus · Accepted Answer

Under profit sharing, payments are based on a measure of organization performance (profits), and the payments do not become part of the base salary.

Which of the Following Is Characteristic of Profit Sharing Programs