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What Is the Fundamental Difference Between Profit-Sharing and Gainsharing

Question 21

Multiple Choice

What is the fundamental difference between profit-sharing and gainsharing?


A) Profit-sharing rewards employees based on the profit the company earns,while gainsharing rewards employees based on productivity improvements.
B) Profit-sharing has been shown to be more motivating for employees than gainsharing.
C) Profit-sharing allows more specific measurement of improvements than gainsharing.
D) Profit-sharing focuses on group rewards,while gainsharing focuses on individual rewards.
E) Profit-sharing is used mostly by large companies,while gainsharing is used mostly by small companies.

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