An Arrangement in Which Employees And/or Managers Contribute a Portion

question 29

Multiple Choice

An arrangement in which employees and/or managers contribute a portion of their salaries and wages, over time, toward purchasing shares of a company's stock from the founder until they own the company outright, is referred to as:

• A) an IPO.
• B) a leveraged buyout.
• C) a hostile takeover.
• D) an ESOP.

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Definitions:

Ajzen

Refers to Icek Ajzen, a prominent psychologist known for his work on the Theory of Planned Behavior, which explains how attitudes, subjective norms, and perceived control over behavior influence intentions and actions.

Social Cognitive Theory

A framework for understanding, predicting, and changing human behavior that emphasizes the role of observational learning, social experiences, and reciprocal determinism in the development of personality.

Theory of Planned Behavior

A psychological theory that predicts human behavior on the basis of attitudes, subjective norms, and perceived control over the behavior.

Description

The act of providing details or characteristics of someone or something to give a clear picture.