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    Compensation: What are profit sharing plans?

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    What are profit sharing plans? List and describe at least two advantages and disadvantages of profit sharing plans.

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    Question:
    What are profit sharing plans? List and describe at least two advantages and disadvantages of profit sharing plans.

    Instruction:
    Profit Sharing plans are incentive based compensation programs used by organizations to reward employees by awarding them a certain percentage of the company's profits. Profit sharing plans are usually designed in a way that organizations contribute a percentage of its pre-tax profits to a pool that will be distributed among eligible employees at a defined time. From experience, the amount awarded to each eligible employee may be based by ...

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    This solution discusses profit shairng plans in 354 words.

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