Employee Stock Ownership Plans Can Be Modeled to Fit All

question 46

Multiple Choice

Employee stock ownership plans can be modeled to fit all the following needs EXCEPT:

• A)to motivate employees and improve their productivity
• B)as a percentage for exceeding predetermined levels of output
• C)to attract and retain employees
• D)as a source of additional financing
• E)as an alternative to wage and salary increases

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Definitions:

Stock Dividend

A form of dividend payment made in shares of stock rather than cash, often signaling a company's growth prospects or lack of sufficient cash flow.

Common Stock Dividends Distributable

Amounts declared by a company to be paid as dividends to holders of its common stock, recorded as a liability until paid.

Stock Split

An action by a company to divide its existing shares into multiple shares to lower the trading price of the stock, making it more accessible to investors.

Stock Dividend

A distribution of extra shares given to shareholders by a corporation, instead of distributing cash.