Which of the Following Makes ESOPs Less Attractive

question 58

Multiple Choice

Which of the following makes ESOPs less attractive?

• A)Less diversification of investment risk
• B)Increased dependence on individual performance
• C)High levels of liquidity
• D)Lack of dependence on organizational performance
• E)The right they offer employees to vote securities

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Definitions:

Insurance Expense

The cost incurred by a business or individual for purchasing insurance coverage, recognized as an expense over the period the insurance coverage is provided.

Annual Income Statement

A financial report that summarizes the revenues, costs, and expenses incurred during a financial year, showing the annual financial performance of a company.

Office Supplies Expense

An accounting category used to track the cost of office supplies used during a specific period.

Office Supplies

Materials and products stocked in an office environment used in its daily operations, such as pens, paper, staplers, and printers.