Discuss the following:

The conditions under which an employer may desire to establish a profit sharing plan. Assume that an employer has had a profit sharing plan for several years and the reactions of the employees toward the plan have been unsatisfactory.

The design flexibility available for a profit sharing plan that may be used by the employer to improve the employees’ reaction without increasing the employer’s annual cost.

The advantages and disadvantages of profit sharing plans from both the employee and employer perspective and share researched data to support your analysis.

How an employer can avoid plan discrimination.