2. Profit Sharing Enterprises

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13 Terms

1

What are profit sharing enterprises?

  • PSEs can take a variety of forms – but common characteristic is that residual claims are held by people other than outside shareholders.

Profit-sharing enterprises

  • ‘Any enterprise that distributes to its workforce, or to any group other than capital holders, a share of the residual is engaged in profit-sharing’

  • Could include joint stock companies and a range of others .

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2
<p>What is a <strong>management-owned firm</strong>?</p>

What is a management-owned firm?

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3

What is a professional partnership?

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4
<p>What is a <strong>worker ownership?</strong></p>

What is a worker ownership?

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5

What is a worker co-operative?

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6

What factors influence ability of PSEs to survive?W

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7

When are PSEs more likely?

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8

Explain the issue of monitoring effort in PSE

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9

Explain the issue of leverage in PSE

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10

Explain the issue of bargaining in PSE

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11

Explain the issue of employment size of PSE (labour managed firm)

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12

Fung (1994) empirical insights

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13

Kruse (1992) - EJ

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