Profit sharing involves awarding pay:
A) that becomes part of employees' base pay,in a manner similar to merit pay.
B) in order to discourage employees from thinking like owners.
C) that is a percentage of the organization's profits.
D) based on individual performance.
E) All of the choices are correct.

Question

Quizplus · Accepted Answer

Profit sharing involves awarding pay that is a percentage of the organization's profits. This means that employees receive a share of the profits based on the company's performance, rather than on their individual performance or a fixed amount like merit pay.

Profit Sharing Involves Awarding Pay