Why do organizations use profit sharing?
A) It has been established that profit sharing helps organizations perform better.
B) It makes employees feel that they have control over the company's profits.
C) It costs less when the organization is experiencing financial difficulties.
D) It helps employees find a direct relation between their performance and gain.
E) It motivates employees more than individual incentives.

Question

Quizplus · Accepted Answer

One reason for ESOPs' popularity is that earnings of the trust holdings are exempt from income taxes.

Why Do Organizations Use Profit Sharing