Which of the Following Is a Major Problem of ESOPs

question 49

Multiple Choice

Which of the following is a major problem of ESOPs?

• A) Employees may become demotivated and frustrated if the share price falls, even though they have worked productively.
• B) ESOPs place employees' pensions at risk because they are tied to the market performance of the organization.
• C) Because of the cash involved, ESOPs can be damaging to the financial well-being of the organization.
• D) Employees view the ESOP as a form of management control.

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Definitions:

mRNA

Messenger RNA, a type of RNA that carries genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein products of gene expression.

Transcription Activators

Proteins that increase gene expression by binding to DNA and helping RNA polymerase initiate transcription.

RNA Polymerases

Enzymes responsible for the synthesis of RNA molecules from a DNA template, a key process in gene expression.

Repressors

Proteins that bind to operator regions on DNA to inhibit the transcription of certain genes.