Under ________, profits earned above a certain level are distributed to employees, while under ________, bonuses are distributed to employees when a company's costs are reduced through greater work efficiency.
A) protection plans; pay-for-knowledge plans
B) profit-sharing; gainsharing
C) gainsharing; profit-sharing
D) a piece-rate incentive plan; a salary plan
E) none of these

Question

Quizplus · Accepted Answer

Profit-sharing involves distributing profits above a certain level to employees, while gainsharing involves distributing bonuses to employees when the company's costs are reduced through greater work efficiency.

Under ________, Profits Earned Above a Certain Level Are Distributed