From an Employer's Perspective, Which of the Following Is the Main

question 75

Multiple Choice

From an employer's perspective, which of the following is the main advantage in setting up an employee stock ownership plan?

• A)favourable tax treatment on earnings earmarked for use in the ESOP
• B)reduction of financial risk for employees and consequent reduction in employee turnover rate
• C)increased protection against union-organizing attempts
• D)increased employee productivity

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Definitions:

Gilts

British and Irish government securities, including issues of local British authorities and some overseas public-sector offerings.

Government Securities

Financial instruments issued by the government to raise funds from the public, including bonds, notes, and bills, generally considered low-risk investments.

Forward Rate

An interest rate agreed upon today for a loan that will start at a future date, reflecting expectations of future interest rates.

Future Rate

The future rate is a predicted interest or exchange rate based on current and expected future economic conditions, affecting loans, investments, and financial planning.