Which of the Following Makes Employee Stock Ownership Plans (ESOPs)less

question 85

Multiple Choice

Which of the following makes employee stock ownership plans (ESOPs) less attractive?

• A)Less diversification of investment risk
• B)Lack of tax and financial advantages
• C)High levels of liquidity
• D)Inability to serve as a takeover defense
• E)Giving employees the right to vote their securities

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.