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Which Statement Does NOT Accurately Describe a Profit-Sharing Plan

Question 1

Multiple Choice

Which statement does NOT accurately describe a profit-sharing plan?


A) For motivational reasons,fixed formula profit-sharing plans are recommended.
B) Stock bonus plans provide employees with the right to purchase shares in the future at a fixed price.
C) Deciding the split is an important issue in gain-sharing plans.
D) A key issue in designing profit-sharing plans is the form of the bonus payout.

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