Employee Stock Ownership Plans

question 129

Multiple Choice

Employee stock ownership plans:

• A) include any arrangements where a share of company profits is put aside and distributed to a designated group of employees.
• B) pay employees a bonus based on the amount of labor or materials costs they save the company.
• C) calculate pay by the number of units produced by the employee.
• D) do all of the above.
• E) do none of the above.

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Definitions:

Due Care

The effort made by an ordinarily prudent or reasonable party to avoid harm to another party.

Negligence

The failure to exercise a level of care that a reasonably prudent person would in similar circumstances, leading to unintended harm or damage.

Proximate Cause

A legal term referring to an event sufficiently related to an injury that the law considers the event to be the cause of that injury.

Breached Duty

The failure to fulfill a legal or ethical obligation, often leading to liability.