Which of the Following Statements Is True Regarding an Employee

question 47

Multiple Choice

Which of the following statements is true regarding an employee stock ownership plan (ESOP) ?

• A) ESOPs are also called competency-based pay plans.
• B) ESOPs are effective because, like bonuses, they reward recent performance.
• C) There exists a strong correlation between ESOPs and employee performance.
• D) The financial stake in the company is adequate to use ESOPs as an effective means to motivate employees.
• E) Under this plan, employees acquire company shares often at below-market prices.

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