Which of the following are not true about ESOPs?
A) An ESOP is a trust
B) Employer contributions to an ESOP are tax deductible
C) ESOPs can never borrow
D) Employees participating in ESOPs are immediately vested
E) C and D

Question

Quizplus · Accepted Answer

ESOPs can indeed borrow money, which is often used to purchase the shares of the company, making statement C incorrect. Additionally, employees participating in ESOPs are not always immediately vested; there can be a vesting schedule, making statement D incorrect as well.

Which of the Following Are Not True About ESOPs