A qualified plan that is created by an employer for its employees where the employer will contribute money whenever a profit is realized is called a profit-sharing plan.
An employee can be defined as an individual who is statutorily employed by an employer of labor in a business firm, so as to perform specific tasks, duties or functions on a daily basis for a certain agreed fee (salary), that is usually paid at the end of the month.
In Economics, profit can be defined as a measure of the amount of money generated when the selling price is deducted from the cost price of a good or service, which is usually provided by producers.
In this context, we can infer and logically deduce that a qualified plan that is created by an employer for its employees where the employer will contribute money whenever a profit is realized is called a profit-sharing plan.
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Complete Question:
An employer has sponsored a qualified plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?
