ESOPs Were Originally Designed to Help Improve Worker Productivity, but Today

question 24

True/False

ESOPs were originally designed to help improve worker productivity, but today they are also used to help prevent hostile takeovers.

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Definitions:

Cost Center

A division or department within an organization that does not directly generate profits but incurs costs, often evaluated for efficiency.

Decentralization

The distribution of functions, powers, people, or things away from a central location or authority, often to increase efficiency or responsiveness.

Quality Managers

Professionals responsible for monitoring and evaluating the various stages of the production process to ensure that the final product meets predetermined quality standards.

Decentralization

The distribution of decision-making power and responsibility to lower levels within an organization.