All of the following are drawbacks of profit-sharing plans EXCEPT
A) profits of the organization are not entirely under employees' control.
B) they are not self-funding.
C) employees' rewards usually come a long time after their improved performance.
D) management may resist disclosing financial and profit information.

Question

Quizplus · Accepted Answer

Profit-sharing plans may have drawbacks such as lack of control over profits, delayed rewards, and resistance from management to disclose financial information. However, they are self-funding, as the rewards distributed to employees come from the organization's profits. Therefore, option B is not a drawback of profit-sharing plans.

All of the Following Are Drawbacks of Profit-Sharing Plans EXCEPT