GK
HUMAN RESOURCE MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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profit sharing
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wages
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benefits
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none of the above
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Detailed explanation-1: -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-2: -Profit sharing is a method of industrial remuneration under which an employer pays his employees a share in the annual net profits of the enterprise as fixed in advance. The share is in addition to wages is not based on time or output.
Detailed explanation-3: -The company contributes a portion of its pre-tax profits to a pool that will be distributed among eligible employees. The amount distributed to each employee may be weighted by the employee’s base salary so that employees with higher base salaries receive a slightly higher amount of the shared pool of profits.
Detailed explanation-4: -There are three basic types of profit sharing plans: traditional, age-weighted and new comparability.