What Is a Reason for the Popularity of Employee Stock

question 27

Multiple Choice

What is a reason for the popularity of employee stock ownership plans (ESOPs) ?

• A) ESOPs provide tax advantages to employers.
• B) ESOPs provide very high risk-free retirement income.
• C) Employees can use ESOPs to buy their company during financial crises.
• D) ESOPs must invest at least 51 percent of their assets in the company's own stocks.
• E) The employees are provided with many more shares of stock than they actually own.

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Definitions:

Perceptual Abilities

The capacity to perceive, interpret, and understand sensory information.

Scrambled Faces

Scrambled Faces refers to a technique used in psychological experiments where facial features are mixed to study recognition and emotional response.

Sensorimotor

The first stage in Piaget’s theory of cognitive development, from birth to about two years, characterized by the development of coordination between sensory input and motor actions.

Preoperational

A stage in Jean Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, characterized by symbolic thinking, egocentrism, and difficulty understanding abstract concepts.