A disadvantage to profit-sharing plans is that _______________.
A)it is seen as a sort of "people's capitalism"
B)participation is limited only to management-level employees
C)it makes an employee's compensation dependent on the performance of their employer
D)employers are required to pay the taxes on the shares offered to employees

Question

Quizplus · Accepted Answer

The disadvantage to profit-sharing plans is that it makes an employee's compensation dependent on the performance of their employer. If the company does not perform well, the employees will not receive a significant share of the profits. This may lead to dissatisfaction and demotivation among the employees.

A Disadvantage to Profit-Sharing Plans Is That _______________