An Employee Stock Ownership Plan Is an Incentive Plan That

question 123

Multiple Choice

An employee stock ownership plan is an incentive plan that ________.

• A) engages many or all employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company
• B) focuses on the sharing of benefits between employer and employees
• C) contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees
• D) involves the firm distributing total annual profits each year among employees based on their merit rating

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Definitions:

Stanford-Binet

A standardized test that measures intelligence and cognitive abilities in children and adults, developed initially by Alfred Binet and later refined at Stanford University.

WISC-III

The Wechsler Intelligence Scale for Children-Third Edition, a tool used to assess the intelligence of children ages 6 through 16.

Valid Test

An assessment instrument that accurately measures what it is intended to measure, demonstrating both reliability and validity.

Correlation Coefficient

A number that represents the strength and direction of a relationship existing between two variables; number derived from the formula for measuring a correlation.