Which of the Following Makes Employee Stock Ownership Plans (ESOPs)less

question 85

Multiple Choice

Which of the following makes employee stock ownership plans (ESOPs) less attractive?

• A)Less diversification of investment risk
• B)Lack of tax and financial advantages
• C)High levels of liquidity
• D)Inability to serve as a takeover defense
• E)Giving employees the right to vote their securities

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Definitions:

Expectancy Theory

A motivational theory that suggests an individual's behavior is determined by their expectations of how much their effort will lead to desired performance and rewards.

Expectancy

The belief about the likelihood that a particular effort will lead to a particular level of achievement or outcome.

Performance Accomplishment

Achievements or outcomes that demonstrate an individual's or group's effective execution of tasks, often measured against pre-defined standards or goals.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act based on the expected outcomes of their actions.