Which of the Following Is the Primary Benefit of Employee

question 27

Multiple Choice

Which of the following is the primary benefit of employee stock ownership plans?

• A) Employees have voting rights in firm decisions.
• B) Firms pay distribution taxes for employees prior to retirement.
• C) Firms may borrow against employee stock held in trust.
• D) Employees are able to diversify their investments.

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Definitions:

Long Run

In economics, a period in which all inputs can be adjusted by firms, allowing for the full impact of decisions to unfold and market to reach equilibrium.

Break-Even Point

The break-even point is the level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss for a business.

Short-Run Supply Curve

A graphical depiction showing the relationship between the price of a good and the quantity supplied over a short period, wherein some inputs are fixed.

Long-Run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a long period, accounting for adjustments in all factors of production.