An ESOP Is a Program in Which the Employees Create

question 11

True/False

An ESOP is a program in which the employees create an internal source of funding by becoming investors in the company.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, determining its operating, investing, and financing activities' liquidity.

Common Stock

A type of equity security that represents ownership in a corporation, giving shareholders voting rights and a share of the company's profits through dividends.

Inventory

Inventory consists of the goods and materials that a business holds for the purpose of resale or production.