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:

Dictyostelium Discoideum

A species of soil-living amoeba famous for its ability to form multicellular structures when food is scarce, often studied for insights into cellular communication and differentiation.

Algae

A diverse group of photosynthetic organisms, mostly aquatic, that range from single-celled forms to large seaweeds, not classified as plants.

Multinucleate

Cells or organisms with more than one nucleus per cell, often resulting from cell fusion or failure of cell division.

Plasmodial Slime Molds

Organisms that exist as a single, large cell with multiple nuclei, moving and feeding in amoeboid fashion.