In addition to its usefulness in attracting and holding 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 provide owners with a way to cash out of the business by selling their shares to the ESOP. This allows them to receive fair market value for their shares and potentially avoid large capital gains taxes.

In Addition to Its Usefulness in Attracting and Holding Key