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:

Cash Discounts

Reductions in the amount due by a customer if payment is made within a specified period, used as an incentive for quick payment.

Cash Payments

Transactions in which cash is used to settle debts, purchase goods, or services at the time of the purchase.

Cash Short

A situation where the amount of cash on hand is less than what is recorded on the books, often indicative of errors or theft.

Other Income

Refers to revenue generated from activities that are not part of a company's core business operations.