Which of the Following Statements Is True of Employee Stock

question 40

Multiple Choice

Which of the following statements is true of employee stock ownership plans?

• A)They encourage employees to become involved in strikebreaking.
• B)They create a sense of partnership between a firm and its employees.
• C)They reduce employee morale and productivity.
• D)They increase the possibility of lockouts.
• E)They are applicable only to senior employees of a firm.

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Definitions:

Total Output

The total quantity of goods or services produced by a firm, industry, or economy in a specific period.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit.

Average Total Cost

The total cost of production divided by the total quantity produced, representing the cost per unit of output.

Average Variable Cost

The per-unit variable cost of production, calculated by dividing total variable costs by the quantity of output produced.