What type of profit-sharing plan involves the firm simply distributing a percentage of profits as profit shares to employees at regular intervals?
A) current profit-sharing
B) Lincoln incentive system
C) Jefferson incentive system
D) deferred profit-sharing plan
E) employee stock ownership plan

Question

Quizplus · Accepted Answer

Current profit-sharing plans involve the distribution of a percentage of profits to employees on a regular basis, usually at the end of a fiscal year. This is the simplest type of profit-sharing plan and is widely used by firms.

What Type of Profit-Sharing Plan Involves the Firm Simply Distributing