Which of the Following Is Not True About an ESOP

question 45

Multiple Choice

Which of the following is not true about an ESOP?

• A)An ESOP will reduce the amount of voting stock in the hands of employees.
• B)An ESOP must be a permanent trusted plan for the exclusive benefit of the employees.
• C)The plan participants become eligible for favorable taxation of distributions from the plan.
• D)Commercial lending institutions,insurance companies,and mutual funds are permitted an exclusion from income for 50% of the interest received on loans used to finance an ESOP's acquisition of company stock.
• E)An ESOP may reduce the potential of an unfriendly takeover.

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Definitions:

Express Emotion

The act of conveying feelings or emotions through words, facial expressions, gestures, or other forms of communication.

Primary Medium

The main method or channel through which information or content is delivered, such as print, digital, or broadcast media.

Location-Based Social Networking

Social media platforms that use geographical data to connect users, suggest activities, or provide content relevant to their current location.

Business Communication

The exchange of information among individuals both inside and outside an organization, conducted for the organization's commercial advantage.