The owner of a video rental business wishes to allow employees to own part of the business.Which plan can she use to do this?

Question

Quizplus · Accepted Answer

ESOP stands for Employee Stock Ownership Plan and allows employees to have ownership in the company through stocks. This is the best choice for the owner of a video rental business who wishes to allow employees to own part of the business. Profit-sharing and bonuses are forms of compensation but do not provide ownership in the company, and a fully vested pension would provide retirement benefits but not ownership.

The Owner of a Video Rental Business Wishes to Allow