Asked by
Boikano Mahlare
on Nov 03, 2024
Verified
In some countries, such as India, profit sharing is mandated by law. Thus, companies have to distribute some of their profits to the employees. What is the key reason for this requirement?
A) These countries are corrupt, and thus they require foreign firms to bribe the workers.
B) This is a requirement for all new foreign investments, as mandated by the United Nations.
C) It is done to punish these companies for colonialism.
D) It allows for a redistribution of wealth at the firm level.
Profit Sharing
A corporate policy where employees receive a share of the company's profits, typically as part of their compensation package.
Wealth Redistribution
The transfer of income and wealth from certain individuals or groups to others through mechanisms like taxation, charity, or welfare policies, aiming at economic equality.
Mandated By Law
Requirements or actions that are legally imposed and regulated by legislation, which individuals or entities must comply with.
- Understand the factors involved in creating salary structures for international settings, considering both local and global requirements.
Verified Answer
KP
Learning Objectives
- Understand the factors involved in creating salary structures for international settings, considering both local and global requirements.