Asked by Taylor Brazeau on Jul 11, 2024
Verified
Refer to Scenario 10.2. In implementing a new profit-sharing plan, Meritas has various options by which payouts can be made to its employees. Which of the following is the best way for Meritas to distribute profits?
A) deferred payment added to pension
B) bonus payments added to yearly salaries
C) disbursements in cash paid monthly
D) a combination of deferred and cash payouts
Profit-sharing Plan
Profit-sharing Plan is a company program that provides employees with a share in the profits of the business, usually distributed annually or quarterly.
Deferred Payment
A financial arrangement allowing for payment to be made at a later date instead of at the time of purchase or service rendered.
- Assess the effect of profit-sharing programs on fostering the expansion of business profits and stimulating staff motivation.
Verified Answer
RB
Raven BernierJul 13, 2024
Final Answer :
D
Explanation :
A combination of deferred and cash payouts allows for immediate rewards and long-term investment in the company's future, balancing employee motivation and retention.
Learning Objectives
- Assess the effect of profit-sharing programs on fostering the expansion of business profits and stimulating staff motivation.