Asked by Katie Kaminski on Jun 06, 2024

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Deferred distribution plans:

A) are types of gain-sharing plans
B) are devised to relate long-term profitability to top management performance
C) place earnings in an escrow account for distribution upon retirement, termination, disability, or death
D) are not as popular as current distribution plans because they lack immediacy
E) are accurately described by all of the above

Deferred Distribution Plans

Financial arrangements allowing employees to defer receipt of wages or benefits until a future date, often for tax advantages or retirement planning.

Gain-Sharing Plans

Performance-based compensation schemes designed to reward employees for contributing to a company's success through increased productivity, which leads to cost savings that are shared with the employees.

Long-Term Profitability

indicates a company's ability to generate consistent profit over an extended period, reflecting its financial health and sustainability.

  • Acknowledge the variety of compensation frameworks utilized in companies.
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TT
Thalia ThonyJun 08, 2024
Final Answer :
C
Explanation :
Deferred distribution plans place earnings in an escrow account for distribution upon retirement, termination, disability, or death. They are not related to gain-sharing plans or top management performance and may not be as popular as current distribution plans because they lack immediacy.