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Takato Wants to Set Up Either a Gain-Sharing Plan or a Profit-Sharing

Question 50

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Takato wants to set up either a gain-sharing plan or a profit-sharing plan,but doesn't know the difference between the two.You tell him that


A) profit-sharing plans are generally preferred by employees.
B) gain-sharing is based on cost savings from productivity improvements,while profit-sharing is based on the firm's profits.
C) gain-sharing plans generally result in more money being given to employees than profit-sharing plans do.
D) there is really very little difference in the two types of plans.
E) gain-sharing plans are generally used only in the public sector,while profit-sharing plans are generally used only in the private sector.

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