Which of the Following Is NOT Normally Regarded as Being

question 49

Multiple Choice

Which of the following is NOT normally regarded as being a good reason to establish an ESOP?

• A) to enable the firm to borrow at a below-market interest rate.
• B) to make it easier to grant stock options to employees.
• C) to help prevent a hostile takeover.
• D) to help retain valued employees.
• E) to increase worker productivity.

---

Definitions:

Tenant Farmers

Individuals who rent land to farm from a landlord.

Economic Rent

Extra income earned by a factor of production (like land or labor) due to its relatively fixed supply, exceeding what is economically necessary to bring it into use.

Landowners

Individuals or entities that hold legal title or ownership of land.

Pure Economic Rent

The income derived from the inherent value of a natural resource or location, excluding any income attributed to improvements or human intervention.