Current distribution plans:
A) place earnings in an escrow account for distribution upon termination, disability, or death
B) create retirement funds
C) are the fastest growing type of profit sharing plan
D) provide a percentage of profits to be distributed quarterly or annually to employees
E) are devised to relate short-term profitability to top management performance

Question

Quizplus · Accepted Answer

Option D provides a clear and tangible method of distributing profits to employees on a regular basis. This can help to motivate employees and create a sense of ownership in the company's success. Options A, B, and E are all valid distribution plans, but they do not necessarily provide the same level of immediate impact as quarterly or annual profit sharing. Option C is incorrect, as there is no mention of any specific type of profit sharing plan in the given information.

Current Distribution Plans