Which of the Following Is a Major Problem of ESOPs

question 49

Multiple Choice

Which of the following is a major problem of ESOPs?

• A) Employees may become demotivated and frustrated if the share price falls, even though they have worked productively.
• B) ESOPs place employees' pensions at risk because they are tied to the market performance of the organization.
• C) Because of the cash involved, ESOPs can be damaging to the financial well-being of the organization.
• D) Employees view the ESOP as a form of management control.

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Definitions:

Need-summary

A concise summary that identifies and outlines the specific needs or requirements of a client or situation, often used in sales to tailor solutions effectively.

Sales Presentation

A formal pitch or demonstration given by a salesperson to propose a product or service to potential buyers.

Industrial Equipment

Machinery and tools designed for use in various industries, including manufacturing and construction.

Sales Presentation

A structured conversation or pitch designed to persuade a potential customer to purchase a product or service.