What is the purpose of a profit-sharing plan?

A) to allow workers to contribute ideas and suggestions
B) to motivate a total commitment to the organization as a whole
C) to enable workers to share in labour cost savings
D) to instill commitment to the employee's immediate work group

Profit-sharing Plan

A profit-sharing plan is an incentive program in which employees receive a share of the company's profits, typically distributed annually.

Total Commitment

A state or condition of being fully dedicated or completely loyal to a cause, activity, or the duties and responsibilities of a role or position.

Labour Cost Savings

Reductions achieved in the expenses related to employing labor, often through efficiencies, negotiations, or changes in work practices, without compromising productivity.