A _____ plan relies on a predetermined formula to distribute a share of the company's profits to eligible employees.
A) profit-sharing
B) bonus
C) stock-option
D) incentive

Question

Quizplus · Accepted Answer

A profit-sharing plan is specifically designed for a company to distribute a share of its profits to eligible employees based on a predetermined formula. It is different from a bonus plan, which is usually a one-time payment based on individual or company performance, and from stock-option and incentive plans, which are aimed at incentivizing employees through stock ownership or rewards for specific achievements.

A _____ Plan Relies on a Predetermined Formula to Distribute