In addition to it use to attract and hold key personnel,ESOPs can also:
A)allow employees to veto management decisions.
B)give employees a share of liability.
C)give owners a way to cash out of the business
D)provide an incentive for managers to reduce labor costs.

Question

Quizplus · Accepted Answer

ESOPs can provide an exit strategy for business owners who want to sell their shares but keep the company in the hands of employees. This can be a tax-efficient way for owners to cash out while allowing employees to become partial owners of the company. Options A, B, and D are not accurate descriptions of the benefits of ESOPs.

In Addition to It Use to Attract and Hold Key