What compensation plan offers each person a bonus based on the company's results, regardless of the person's actual effort?
A) Profit sharing
B) A lump-sum bonus
C) Gainsharing
D) Financial incentives
E) Piece-rate production

Question

Quizplus · Accepted Answer

Profit sharing is a compensation plan where each person receives a bonus based on the company's results, regardless of their actual effort. This is typically tied to the company's overall profitability, revenue or earnings. Profit sharing encourages all employees to work harder to achieve the company's goals, as everyone benefits from increased profitability.

What Compensation Plan Offers Each Person a Bonus Based on the Company's