The Advantages of Employee Stock Ownership Plans Include All of the Following

question 13

Multiple Choice

The advantages of employee stock ownership plans include all of the following EXCEPT that

• A)employers are able to provide retirement benefits to employees at a relatively low cost.
• B)employees' pensions are less vulnerable due to diversification.
• C)employee stock ownership plans can increase employees' pride of ownership.
• D)employee stock ownership plans can provide an incentive for employees to increase productivity.

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Definitions:

Partner's Contribution

Refers to the resources (capital, property, expertise) a partner brings into a partnership.

Corporation

A legal entity recognized by law as a separate entity from its owners with its own rights, liabilities, and obligations.

Board of Directors

A group of individuals elected to represent shareholders and govern the corporation's affairs and decision-making processes.

General Partnership

A business structure where two or more individuals own and operate a business together, sharing all profits, losses, and liabilities equally, unless otherwise agreed.