Which of the following is an advantage of establishing employee stock ownership plans?
A) Employees are not dependant on the employers for their retirement benefits.
B) Firms can receive favorable tax treatment.
C) Firms have lesser control over organizational productivity.
D) The employees can purchase shares of company stock for an unlimited period of time.

Question

Quizplus · Accepted Answer

Establishing employee stock ownership plans can provide firms with favorable tax treatment. This can result in a lower tax burden for the company, which can increase profits and enhance shareholder value. However, the other options listed are incorrect. While employee stock ownership plans can provide retirement benefits, employees are still dependent on the company's financial success, and firms may have some control over organizational productivity. Additionally, employee stock ownership plans typically have specific timeframes for purchasing shares.

Which of the Following Is an Advantage of Establishing Employee