A Major Problem with ESOPs Is That

question 98

Multiple Choice

A major problem with ESOPs is that

• A) they carry a significant risk for employees.
• B) employees are not allowed to participate in votes by shareholders.
• C) the stocks within the trust are too widely diversified to earn high returns.
• D) any earnings from the trust holdings are taxed at an extremely high rate.
• E) they result in reduced profitability for the employees.

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Definitions:

Freud's Theory

A set of psychoanalytic theories developed by Sigmund Freud that emphasize unconscious processes, childhood experiences, and sexual and aggressive drives in human behavior.

Personality Systems

The organized set of characteristics and behaviors that makes a person unique and influences their interactions with the environment.

Big Five Personality Traits

A model that describes human personality using five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Temperaments

Inherent personality traits that significantly influence an individual's behavior and interactions from an early age.