Profit Share
Arrangement where employees receive portion of company profits.
Formula
Employee Share = Total Profit × Profit Share %
Real World
John Lewis Partnership distributes a share of annual profits to all its Partners (employees), with the 2023 bonus equating to 9% of salary — directly tying staff rewards to company performance.
Exam Focus
Use John Lewis as a named example; examiners reward specific business evidence over vague statements about 'a company'.
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