Employee Stock Ownership Plans (ESOPs)are Attractive to Employers

question 36

Multiple Choice

Employee stock ownership plans (ESOPs) are attractive to employers.Along with tax and financing advantages,ESOPs give employers a way to build pride in and commitment to the organization.Which of the following statements weakens this argument?

• A) Employees are not allowed to participate in general body meetings as shareholders.
• B) The stocks within the trust are too widely diversified to earn high returns.
• C) The stock earnings are taxed at high rates.
• D) Employees are forced to return the stock profits to the organization.
• E) Risks involved will directly affect employees' retirement income.

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Definitions:

Measurement Error

The degree to which a measurement deviates from the true score value.

Measure

A method or tool used for quantifying, assessing, or determining the level, quantity, or capacity of a variable or phenomenon.

Pearson Product-moment

A statistical coefficient expressing the correlation between two variables, measuring the strength and direction of their linear relationship.

Correlation Coefficient

A statistical measure that indicates the extent to which two or more variables fluctuate together.