QQuestionBusiness Management
QuestionBusiness Management
A qualified profit-sharing plan is designed to:
a) allow key employees to participate in the profits of the company
b) allow employees to participate in the profits of the company
c) keep key employees from leaving the company
d) allow employees to elect company officers
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Answer
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Step 1: Identify the correct answer based on the definition of a profit-sharing plan.
A profit-sharing plan is a type of retirement plan where the employer contributes a portion of the company's profits to the employees' retirement accounts. This allows employees to benefit from the company's success and encourages them to work towards the company's goals.
Step 2: Evaluate the answer choices based on the definition.
(a) Allow key employees to participate in the profits of the company - This answer is correct, as profit-sharing plans are designed to allow key employees to benefit from the company's profits. (b) Allow employees to participate in the profits of the company - This answer is correct, as profit-sharing plans are designed to allow all employees to benefit from the company's profits. (c) Keep key employees from leaving the company - While profit-sharing plans can help retain employees, this is not the primary purpose of the plan. Therefore, this answer is not correct. (d) Allow employees to elect company officers - This answer is not related to profit-sharing plans and is therefore not correct.
Final Answer
The correct answer is (a) allow key employees to participate in the profits of the company and (b) allow employees to participate in the profits of the company.
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