solution

Which of the following is a disadvantage of profit sharing?

Select one:

a. Most employees don’t feel their jobs have a direct impact on profits.

b. Most profit sharing plans are highly sophisticated and hence not easily understood by employees

c. Most employees are not concerned about the profitability of their organizations.

d. Most employees are unwilling to learn about financial measures and the business factors that influence them

Employee stock ownership plans:

Select one:

a. provide employees with end-of-year bonuses that do not build into their base pay

b. provide employees with the right to purchase stock at a specified (exercise) price for a fixed time period

c. offer employees the opportunity to purchase company stock, often partially or fully matched by employer-paid stock for the employee

d. grant stock options to employees at all levels rather than just senior executives