ENTREPRENEURSHIP

Detailed explanation-1: -A profit-sharing plan is a retirement plan that gives employees a share in the profits of a company. Under this type of plan, also known as a deferred profit-sharing plan (DPSP), an employee receives a percentage of a company’s profits based on its quarterly or annual earnings.

Detailed explanation-2: -A profit-sharing plan is a pension plan, which gives an employee a share in the company’s profits. As per this plan, which also referred to as the deferred profit-sharing plan (DPSP), employees will go onto receive a portion from the company’s profits which depend on the annual or quarterly earnings.

Detailed explanation-3: -In a profit-sharing plan, employees receive an amount from their employer based on company profits (rather than a specific amount outlined in a match formula). All eligible employees are eligible to receive an employer discretionary profit sharing contribution.

Detailed explanation-4: -A profit-sharing plan is a type of incentive plan where businesses give indirect or direct payments to employees. Employers pool profits into a contribution fund, which they distribute to all employees based on a pre-determined formula, giving employees an explicit stake in a company’s profits.

Detailed explanation-5: -“Profit-sharing is a method of industrial remuneration under which an employer undertakes to pay to his employees, a share in the net profits of the enterprise in addition to their regular wages”.