Asked by Nicholas Paradas on Apr 24, 2024

verifed

Verified

Which are the main types of profit sharing plans?

A) current assessment plan,deferred plan,and blended plan
B) deferred plan,cash plan,and group plan
C) combination plan,deferred plan,and current distribution plan
D) current distribution plan,combination plan,and employee plan

Profit Sharing Plans

Compensation programs where employees receive a share of the company's profits, typically based on its financial performance.

Current Assessment Plan

A strategic blueprint designed to evaluate and improve current organizational processes and performance.

Blended Plan

A retirement plan combining aspects of both defined benefit and defined contribution plans.

  • Grasp the concept, benefits, and drawbacks of different profit-sharing plans.
verifed

Verified Answer

AA
Abdullah AladibMay 02, 2024
Final Answer :
C
Explanation :
The main types of profit sharing plans are combination plan, deferred plan, and current distribution plan. Option A is incorrect as it lists "blended plan" which is not a commonly used term in profit sharing plans. Option B is also incorrect as it lists "cash plan" and "group plan" which are not specific types of profit sharing plans. Option D is incorrect as it includes "employee plan" which is vague and not specific to profit sharing plans.