Regarding Employee-Owned Corporations,the Survey by Western Compensation & Benefits Found

question 152

Multiple Choice

Regarding employee-owned corporations,the survey by Western Compensation & Benefits found that

• A) employee-owned corporations have been concentrated in the forest products sector.
• B) the majority of companies that have adopted ESOPs have experienced improvements in both sales and profits.
• C) the popularity of employee-owned corporations is decreasing.
• D) it was originally thought that ESOPs would give employees an increased sense of belonging in the company,but that has not happened.
• E) all of the statements are accurate.

---

Definitions:

Natural Business Year

The fiscal year that ends when a business's activities have reached the lowest point in its annual operating cycle, theoretically the most optimal time for financial reporting.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Contra Account

An account used in accounting to offset or reduce the balance of a related principal account.

Prepaid Expenses

Costs paid in advance for goods or services to be received in the future, which are recorded as assets until they are consumed.