Which of the following is a disadvantage of profit sharing plans?
A) Employees must trust that management will accurately disclose financial and profit information.
B) Employees are taxed heavily on the income that they generate from profit sharing plans.
C) Employees cannot access the funds that they receive from profit sharing plans for up to three years.
D) Employers get little or no rebate on income tax for choosing profit sharing plans.

Question

Quizplus · Accepted Answer

The disadvantage of profit sharing plans is that employees must trust that management will accurately disclose financial and profit information. If employees do not trust their employers, they may be less motivated to work hard and contribute to the company's success. Additionally, if management does not provide accurate financial information, employees may not receive their fair share of profits.

Which of the Following Is a Disadvantage of Profit Sharing