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:

Operating Activities

Transactions related to the core business operations of a company, including revenue-generating activities and expenses necessary for generating revenue.

Prepaid Expenses

Expenses paid for in advance of the period in which they will be used or consumed, recorded as assets on a balance sheet until the benefit is received.

Accrued Expenses Payable

Liabilities for expenses that have been incurred but not yet paid, recorded on a company's balance sheet.

Part-Time Workers

Employees who work less than the full-time hours defined by their employer, often with a varying schedule.