In Addition to Its Use to Attract and Hold Key

question 49

Multiple Choice

In addition to its use to attract and hold key personnel, ESOPs can also:

• A)allow employees to veto management decisions.
• B)give employees a share of liability.
• C)give owners a way to cash out of the business.
• D)provide an incentive for managers to reduce labour costs.

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Definitions:

Consumption

The process by which goods and services are used up or utilized, reflecting household spending.

Saving

The process of setting aside a portion of current income for future use.

Income Level

The amount of money earned or received by an individual or household over a certain period.

Consumption Function

An economic formula representing how consumer spending changes in relation to changes in income.