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Which of the Following Is a Disadvantage of Profit Sharing

Question 43

Multiple Choice

Which of the following is a disadvantage of profit sharing plans?


A) Employees must trust that management will accurately disclose financial and profit information.
B) Employees are taxed heavily on the income that they generate from profit sharing plans.
C) Employees cannot access the funds that they receive from profit sharing plans for up to three years.
D) Employers get little or no rebate on income tax for choosing profit sharing plans.

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