Final Answer:
A qualified profit-sharing plan is designed to distribute a portion of company earnings to its employees thus option B is correct.
Step-by-step explanation:
A qualified profit-sharing plan, as indicated in option B, is designed to distribute a portion of company earnings to its employees. This type of plan allows companies to share the financial success of the business with their employees. The distribution is typically based on a predetermined formula, such as a percentage of profits or a fixed contribution, and it serves as an incentive for employees to contribute to the company's success.
While option A suggests allowing key employees to participate in the profits of the company, this is not exclusive to key employees; all eligible employees can participate in a qualified profit-sharing plan. Option C, keeping key employees from leaving the company, may be a byproduct of a well-designed profit-sharing plan, but it's not the primary purpose. Option D, allowing employees to elect company officers, is unrelated to the purpose of a profit-sharing plan, as it primarily focuses on financial incentives rather than corporate governance.
In conclusion, option B accurately describes the primary objective of a qualified profit-sharing plan, emphasizing the distribution of a portion of company earnings to employees as a means of fostering employee engagement and rewarding their contributions to the company's financial success.