Employee Stock Ownership Plans (ESOPs) Are Attractive to Employers

question 108

Multiple Choice

Employee stock ownership plans (ESOPs) are attractive to employers. Along with tax and financing advantages, ESOPs give employers a way to build pride in and commitment to the organization. Which statement weakens this argument?

• A) Employees are not allowed to participate in general body meetings as shareholders.
• B) The stocks within the trust are too widely diversified to earn high returns.
• C) The stock earnings are taxed at high rates.
• D) Employees are forced to return the stock profits to the organization.
• E) Risks involved will directly affect employees' retirement income.

---

Definitions:

Drug Dependence

A condition where a person feels compelled to continue taking a drug, either for its psychological effects or to avoid withdrawal symptoms.

Withdrawal Symptoms

Withdrawal symptoms are physical or psychological effects that occur after reducing or stopping the intake of a substance that the body has become dependent on.

Activation-Synthesis Theory

A neurobiological theory explaining dreams as the brain's attempt to make sense of random neural activity during REM sleep.

Cerebral Cortex

The outermost layer of the brain, playing a key role in memory, attention, perception, cognition, awareness, thought, language, and consciousness.