Which of the Following Factors Does Not Increase the Effectiveness

question 30

Multiple Choice

Which of the following factors does not increase the effectiveness of employee share ownership?

• A) The proportion of the employees who hold shares
• B) The degree of employee consultation in share plan development
• C) The proportion of the firm owned by employees
• D) Whether the employer is a publicly traded or a privately held corporation

---

Definitions:

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Net Cash Flows

The difference between a company's cash inflows and outflows over a specific period.

Accounting Rate

Typically refers to the rate of return or interest rate used in financial calculations, such as net present value or internal rate of return.

Straight-Line Method

A method of calculating depreciation of an asset, which involves evenly spreading the cost of the asset over its useful life.