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Which of the Following Is a Difference Between a Profit-Sharing

Question 60

Multiple Choice

Which of the following is a difference between a profit-sharing plan and an employee ownership plan?


A) Unlike an ownership plan, base pay is not reduced when a profit-sharing plan in introduced.
B) Ownership focuses on the success of the organization as a whole unlike profit-sharing.
C) Profit sharing plans promote individual competition whereas ownership plans promote group competition.
D) The link between pay and performance is less obvious under ownership than under profit sharing.
E) Ownership plans promote individual competition whereas profit-sharing plans promote group competition.

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