Question

"Profit-sharing plans provide a more direct incentive in small firms than in large firms. are practically impossible to use successfully in small firms. are similar to individual incentive plans in their motivational effect. are an expensive fringe benefit for small firms, costing 40 percent of payroll.

Answer 1

Statement "A" is correct.

Step-by-step explanation:

Profit distribution delivers a a lot of direct motivation in little companies than bigger firms because of the dimensions of firms and range of individuals operating in it.

As the range of individuals is small, there's high official communication and also these strategies are a lot of direct in environment.

Therefore statement A is correct which identifies that the share range delivers a lot of direct incentive in small size companies than in huge firms.

These strategies are utilized with success in smaller companies thus statement B is incorrect. These aren't the same as distinct strategies thus statement C is also incorrect. These strategies aren't peripheral edges cost accounting 40% of staff thus statement D is not correct.

Answer 2

Provides a more direct incentive in small firms than in large firms.

Step-by-step explanation:

Profit sharing plan can be defined as a contribution plan in which the management of a company shares part of its profit with the employees. This could motivate and inspire the employees to work efficiently towards the growth of the organisation.

Profit sharing plan gives the employees a sense of ownership, this would inspire them to work harder to ensure the success of the organisation.