Which of the Following Is an Advantage of Establishing Employee

question 95

Multiple Choice

Which of the following is an advantage of establishing employee stock ownership plans?

• A) Employees are not dependent on the employers for their retirement benefits.
• B) Firms can receive favorable tax treatment.
• C) Firms have lesser control over organizational productivity.
• D) The employees can purchase shares of company stock for an unlimited period of time.

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Definitions:

Economic Signals

Indicators or signs used by consumers and producers to guide their actions, such as prices, which indicate when to buy or sell products or resources.

Producers

Entities that create, manufacture, or supply goods and services for the purpose of selling to consumers, businesses, or other producers.

Consumer Surplus

The gap between the total sum consumers are ready and able to spend for a good or service and the actual amount they pay.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward sloping to the right, reflecting the inverse relationship between price and quantity demanded.