2006-06-25 01:23:42 · 2 answers · asked by nikhil s 1 in Business & Finance ➔ Careers & Employment
You might be thinking about profit sharing. That is when a company shares it's profits with employees through cash bonuses or a deferred comp program. The company usually sets aside a certain percent of pre-tax profit and distributes to employees in individual accounts which could be invested in company stock or other investment funds.
2006-06-25 02:42:50 · answer #1 · answered by BluedogGirl 5 · 0⤊ 0⤋
Sharing is when you give part of something that you own to someone else. Profit is the money that you have above and beyond the costs it took to generate it. For instance, if I buy a shirt for 8 dollars and sell it to you for 10, I made 2 dollars profit. If I give 1 dollar to my employee, that would be profit sharing.
2006-06-25 01:36:02 · answer #2 · answered by ? 4 · 0⤊ 0⤋