Asked by Helio Hernandez on Jun 23, 2024
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Profit sharing pays out of net profits while gain-sharing pays out of new savings or "gains".
Profit Sharing
A compensation strategy where employees receive a portion of the company's profits, aligning their interests with the financial success of the business.
Gain-Sharing
A plan that allows employees to share in cost savings or productivity gains realized by their efforts.
Net Profits
The financial gain attained by a business after subtracting all operating expenses, interest, taxes, and any other necessary expenditures from its total revenue.
- Identify the distinctions among several kinds of salary and perks, such as fundamental wage, incentive pay, extra payments, share options, and shared earnings.
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Learning Objectives
- Identify the distinctions among several kinds of salary and perks, such as fundamental wage, incentive pay, extra payments, share options, and shared earnings.
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