An Entrepreneur Wants to Transfer Ownership of the Business to Her

question 37

Multiple Choice

An entrepreneur wants to transfer ownership of the business to her employees. She sets up an Employee Stock Ownership Trust which borrows money to buy shares of stock which will eventually be passed on to the employees. This type of transfer of ownership is known as

• A) liabilities plan.
• B) trusted plan.
• C) noncompetitors plan.
• D) earnings method plan.
• E) leveraged plan.

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Definitions:

Confidence

In statistics, it relates to the degree of certainty or reliability in an estimate or test result, often expressed as a confidence interval.

Monetary Error

A monetary error refers to inaccuracies or mistakes in financial transactions or accounting, which can impact financial statements or balances.

Confidence Interval

It refers to the range within which we expect a population parameter to lie with a certain degree of confidence, based on sample data.

Sample Mean

The average value of a given characteristic within a sample drawn from a population.