Which of the Following Statements Is True Regarding an Employee

question 11

Multiple Choice

Which of the following statements is true regarding an employee stock ownership plan (ESOP) ?

• A) Under this plan, employees acquire company shares, often at below-market prices.
• B) There exists a strong correlation between ESOPs and employee performance.
• C) The financial stake in the company is adequate to use ESOPs as an effective means to motivate employees.
• D) ESOPs are effective because, like bonuses, they reward recent performance.
• E) ESOPs are also called competency-based pay plans.

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Definitions:

Other Banks

Financial institutions that provide a range of services including deposits, loans, and investment products, distinct from the context's primary banking entity.

Clearing House Interbank Payments System

A network used by financial institutions to send and receive payments or securities in large volumes, typically for bank-to-bank transactions.

Society of Worldwide Interbank Financial Telecommunications

An international messaging network used by banks and financial institutions to securely transmit information and instructions.

Client Accounts

Accounts managed by a company or firm that contain the personal and transactional information of its clients.