Which of the Following Statements Is True Regarding an Employee

question 75

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 behaviour.
• 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:

Gain On Sale

The profit that results from selling an asset for more than its purchase price.

Net Income

The total earnings or profit of a company after all expenses and taxes have been deducted from total revenue.

Retirement Of Debt

The process of paying off or settling a debt obligation, either through periodic payments over time or a lump sum payment.

Accumulated Depreciation

The cumulative sum of depreciation costs recorded for a fixed asset since its initial use.