Asked by Adrian Rogalski on May 23, 2024
Verified
Which statement does NOT accurately describe a profit-sharing plan?
A) For motivational reasons,fixed formula profit-sharing plans are recommended.
B) Stock bonus plans provide employees with the right to purchase shares in the future at a fixed price.
C) Deciding the split is an important issue in gain-sharing plans.
D) A key issue in designing profit-sharing plans is the form of the bonus payout.
Gain-Sharing Plans
A performance-based compensation strategy where employees receive additional financial bonuses based on improvements in the company's productivity or achievements.
Bonus Payout
An additional financial compensation awarded to employees, often based on performance or as a part of a special recognition.
- Understand the concept of profit-sharing plans and their motivational aspects.
Verified Answer
CG
Cindy GomezMay 26, 2024
Final Answer :
B
Explanation :
Stock bonus plans actually grant employees shares of the company's stock directly, not the right to purchase shares in the future at a fixed price. That description more accurately fits stock option plans, not stock bonus plans.
Learning Objectives
- Understand the concept of profit-sharing plans and their motivational aspects.