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Q.What do you mean by profit-sharing?

Gujarat GsebGujarat Board (GSEB) HSC Commerce Board 2022Subjective· 1mImportance★★★★★
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Profit-sharing means giving employees an agreed portion of the business's profits as an incentive over and above their wages.

Under this scheme a fixed percentage of profit is paid to workers, so their earnings rise when the firm does well. It motivates employees to work harder, improves loyalty and co-operation, reduces conflict between management and labour, and makes workers feel they are partners in the enterprise's progr …

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