Asked by Derin Jabour on Apr 24, 2024
Verified
Which characteristic of profit-sharing plans may be viewed as negative from the perspective of an employer?
A) They align employee and employer interests.
B) They eliminate the "free rider" principle by holding everyone accountable.
C) They are more complex than gain-sharing plans.
D) They require the sharing of potentially confidential information with employees.
Profit-Sharing Plans
Programs that distribute a portion of an organization’s profits to its employees, aligning employees' interests with the financial success of the company.
Free Rider
An individual who benefits from resources, goods, or services without paying for them, often discussed in the context of public goods or collective efforts.
- Identify the inspiring elements within different pay and reward schemes.
- Recognize the advantages and disadvantages of employee stock ownership plans and profit-sharing strategies.
Verified Answer
AA
Abdullah AladibMay 02, 2024
Final Answer :
D
Explanation :
Profit-sharing plans may require employers to share potentially confidential information such as financial statements with their employees, which may be viewed as a negative characteristic from the employer's perspective.
Learning Objectives
- Identify the inspiring elements within different pay and reward schemes.
- Recognize the advantages and disadvantages of employee stock ownership plans and profit-sharing strategies.
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