Which of the Following Statements Is True Regarding an Employee

question 11

Multiple Choice

Which of the following statements is true regarding an employee stock ownership plan (ESOP) ?

• A) Under this plan, employees acquire company shares, often at below-market prices.
• B) There exists a strong correlation between ESOPs and employee performance.
• C) The financial stake in the company is adequate to use ESOPs as an effective means to motivate employees.
• D) ESOPs are effective because, like bonuses, they reward recent performance.
• E) ESOPs are also called competency-based pay plans.

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Definitions:

Decisive Direction

Clear and firm guidance or instructions on what action to take or decision to make.

Shift Responsibility

The act of transferring accountability or duties from one party to another.

Competencies

A mix of skills, knowledge, and abilities that an individual possesses which are necessary for effective performance in a job or task.

Traits Or Skills

Characteristics or competencies that are inherent or developed, influencing an individual's ability to perform.