A Key Advantage of Employee Stock Ownership Plans Is That

question 30

True/False

A key advantage of employee stock ownership plans is that the company gets a tax advantage equal to the fair market value of the shares that are transferred to the trustee and can also claim an income tax deduction for dividends paid on ESOP-owned stock.

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Definitions:

Management By Walking Around

A management style where leaders walk around the workplace to interact with employees, understand their tasks, and encourage open communication.

Service Providers

Companies or individuals that offer services to others in exchange for payment, rather than selling physical products.

Customers

Persons or organizations that buy products or services from a company.

Intangible

Describes something that cannot be physically touched or measured, such as services, brand reputation, or intellectual property.