Which of the Following Is NOT an Advantage of ESOPs

question 59

Multiple Choice

Which of the following is NOT an advantage of ESOPs?

• A) Firms can reward employees with shares.
• B) The employees' pensions are less vulnerable due to diversification.
• C) ESOPs can increase employees' pride of ownership.
• D) ESOPs can provide an incentive for employees to increase productivity.

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Definitions:

Supply Chain

The entire system of producing and delivering a product or service, from the supplier of raw materials to the customer.

Chain Profits

The overall financial gains generated through the interconnected stages of a supply chain.

Forward Buy

The purchasing strategy of a product in larger quantities when it is priced lower, to use or sell over time as prices increase.

Demand Variability

The fluctuation in customer demand for a product or service over a certain period, affecting inventory management and supply chain.