Profit-Sharing Plans, Where Employees Receive Bonuses in Proportion to the Company's

Multiple Choice

Profit-sharing plans, where employees receive bonuses in proportion to the company's profits,

A) reduce the principal-agent problem.
B) are intended to reduce the number of employees who are residual claimants.
C) eliminate shirking problems.
D) are essentially gifts to employees and do not generate any benefit for the firm's owners.