ESOPs May Be Used for Which of the Following

question 74

Multiple Choice

ESOPs may be used for which of the following?

• A) As an alternative to divestiture
• B) To consummate management buyouts
• C) As an anti-takeover defense
• D) A, B, and C
• E) A and B only

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Definitions:

Strategic Leader

A person who has the ability to influence others to voluntarily make decisions that enhance the prospects for the organization's long-term success while maintaining short-term financial stability.

Optimum Allocation

The process of distributing resources in the most efficient manner to achieve the highest possible returns or outcomes.

Subordinates

Employees or team members who are lower in rank or position and report to a superior.

Porter's Model

A strategic tool developed by Michael Porter used to analyze an industry's structure and competition intensity through five forces: threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products, and competitive rivalry.