Which of the Following Is a Major Problem of ESOPs

question 49

Multiple Choice

Which of the following is a major problem of ESOPs?

• A) Employees may become demotivated and frustrated if the share price falls, even though they have worked productively.
• B) ESOPs place employees' pensions at risk because they are tied to the market performance of the organization.
• C) Because of the cash involved, ESOPs can be damaging to the financial well-being of the organization.
• D) Employees view the ESOP as a form of management control.

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Definitions:

Conj

In context to logic, it signifies the operation of combining two or more propositions with an "and" connector to form a more complex statement.

Taut

Describes something stretched tightly or pulled to its tension point; also used metaphorically to describe something clear and effective with no wasted words.

MP

In the context of logic, it often stands for "modus ponens," a form of argument where if "if p then q" is true and p is true, then q must also be true.

Justification

The action of showing something to be right or reasonable, often by providing supporting evidence or reasoning.