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Which of the Following Is a Disadvantage of Gain-Sharing Plans

Question 44

Multiple Choice

Which of the following is a disadvantage of gain-sharing plans?


A) Payouts can occur even if a company's financial performance is poor.
B) Pay-performance link is indirect.
C) Employees are required to put up money to exercise grants.
D) Mandatory stock ownership required by gain-sharing plans can increase turnover rates.

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