A ________ plan distributes compensation based on some established formula designed around revenue of the company.
A) skill-based
B) profit-sharing
C) merit-based
D) piece-rate
E) competency-based

Question

Quizplus · Accepted Answer

Profit-sharing plans distribute compensation based on a formula that takes into account the revenue or profits of the company. This encourages employees to work towards the success of the company as a whole, rather than just their own individual performance.

A ________ Plan Distributes Compensation Based on Some Established Formula