Question

Nancy's employer distributes checks at the end of each quarter, representing an equitable portion of 5% of the company's pretax profits for the previous period. This is known as _____.

Answer 1

In the scenario above, the action that Nancy is doing is called the profit sharing. The profit sharing is described as profits that are from the company is being given to the people who are working under that the company. It describes how Nancy distributes the check and the portions of the company's profits.