Final answer:
The term for a pool of money that employees can spend on capital improvements when a company meets profitability goals is called 'gainsharing'.
Step-by-step explanation:
The pool of money that employees can spend on capital improvements if the company meets profitability goals is referred to as gainsharing. Gainsharing is a system where profits and earnings are distributed among employees, and since employees directly benefit from the success of the business, there is usually an improvement in productivity.
It encourages teamwork and collective effort to achieve financial targets, thereby potentially increasing the company's profitability and employees' wages. This contrasts with an employee stock ownership plan, which involves employees owning shares of the company.