Profit-sharing may be more appropriate than an employee share ownership plan if the company's objective is to stimulate short-term sales.

Question

Quizplus · Accepted Answer

Profit-sharing provides short-term incentives as employees receive a share of the company's profits based on their performance, which can motivate them to work harder to generate more sales. On the other hand, an employee share ownership plan provides long-term incentives as employees own a stake in the company and benefit from its growth and success over time.

Profit-Sharing May Be More Appropriate Than an Employee Share Ownership