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

---

Definitions:

Suitability

The appropriateness of a specific investment or financial decision to an individual's unique situation.

Fair Debt Collection Practices Act

A US federal law established to eliminate abusive practices in the collection of consumer debts, promote fair debt collection, and provide consumers with an avenue for disputing and obtaining validation of debt information.

Mega-Mart

A very large retail store offering a wide variety of goods.

Overdue Bill

A financial statement or invoice that has not been paid by the due date.