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:

Scanlon Plan

A gain-sharing program designed to motivate employees to increase productivity through a shared benefits system where cost savings are passed on to employees.

Long-Term Incentives

Compensation plans designed to reward employees over a longer period, often tied to the company's performance, to foster commitment and align employees' interests with those of the company.

Lump-Sum Bonuses

One-time payments given to employees as a reward for exceptional performance, separate from their regular salary.

Profit Sharing

A company policy where employees receive a share of the company's profits, typically provided as a portion of annual income.