Which of the Following Best Describes Profit-Sharing Plans

Multiple Choice

Which of the following best describes profit-sharing plans?

A) They provide a more powerful incentive in small firms than in large firms.
B) They are practically impossible to use successfully in small firms.
C) They are similar to individual incentive plans in their motivational effect.
D) They are an expensive fringe benefit for small firms,costing 40 percent of payroll.