Organizational Incentive Programs: Profit Sharing, Gain Sharing, and Employee Stock Ownership


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Tina's employer gives her a contract that allows her to purchase company stock in the future at a set price. Tina has chosen to purchase the stock in two-to- three days and based on the contract she must hold it for at least one month before she can exercise them. This doesn't bother her as she didn't plan to sell them for at least six months when she wants to buy a new car. What is the vesting period in this case?

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1. What do stock options, profit sharing, and gain sharing have in common?

2. Which of the following is FALSE about gain sharing?

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About This Quiz & Worksheet

Employers can offer employees incentive options to see that they are compensated based on company success. This quiz/worksheet combo will help you test your understanding of three incentive options, along with examples.

Quiz & Worksheet Goals

In these assessments you'll be tested on the following organizational incentive options:

  • Gain sharing
  • Profit sharing
  • Employee stock options

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related employee incentives lesson
  • Defining key concepts - ensure that you can accurately define and recognize facts about employee incentive options, such as stock options and gain sharing
  • Distinguishing differences - compare and contrast topics from the lesson, such as gain sharing and profit sharing

Additional Learning

What are the benefits of providing these kinds of incentives to employees? Find out with the lesson, Organizational Incentive Programs: Profit Sharing, Gain Sharing, and Employee Stock Ownership. The lesson addresses the following objectives:

  • Introduces the need for performance incentives
  • Explains how incentive is based on the success of a company
  • Explores employee stock options, profit sharing plans, and gain sharing plans through examples