QVT Financial, an auditing firm, distributes a portion of the profits resulting from improvements in productivity and efficiency among its employees. If the company enjoys an improvement of $45,000, 60 percent of the improvement is the company's share. The other 40 percent is distributed among the employees in the company. What is being exemplified in this scenario?
A) profit rate
B) gainsharing
C) commission sharing
D) merit gain
E) group bonus

Question

Quizplus · Accepted Answer

This scenario exemplifies gainsharing, which is a type of incentive program where a portion of the financial gains resulting from increased productivity or efficiency is shared among employees.

QVT Financial, an Auditing Firm, Distributes a Portion of the Profits