What is the full form of "PSP"?

A. Price Sharing Plan

B. Premium Stock Position

C. Profit Sharing Plan

D. Private selling Profit

Answer: Option C

Solution(By Examveda Team)

A profit sharing plan is a retirement plan that gives employees a share in the profits of a company. Under this type of plan, also known as a deferred profit sharing plan (DPSP), an employee receives a percentage of a company's profits based on its quarterly or annual earnings. This is a great way for a business to give its employees a sense of ownership in the company, but there are typically restrictions as to when and how a person can withdraw these funds without penalties.