Which of the Following Statements Is True Regarding an Employee

question 1

Multiple Choice

Which of the following statements is true regarding an employee stock ownership plan (ESOP) ?

• A) Under this plan, employees acquire stock, often at below-market prices.
• B) Research on ESOPs indicates that it does not affect employee satisfaction.
• C) ESOPs for top management tend to increase unethical behavior.
• D) Research on ESOPs indicates that ESOPs drastically improve employee performance.
• E) ESOPs are also called competency-based pay plans.

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Definitions:

Per-Worker Production Function

A measure of the relationship between the average output produced by each worker and the inputs used in production.

Capital Per Worker

The average amount of capital (tools, machinery, etc.) available for each employee in the production process.

Net Present Value (NPV)

A method used in capital budgeting to evaluate the profitability of an investment or project, calculated by summing the present values of incoming and outgoing cash flows over the life of the investment.

Working Capital

The measure of a company's liquidity, efficiency, and its short-term financial health, calculated as current assets minus current liabilities.