Franklin Appliances Inc. is an electrical appliances manufacturing company. It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf. What is Franklin Appliances using in this scenario?

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Franklin Appliances Inc. is using an employee stock ownership plan (ESOP) in this scenario. This involves distributing shares of stock to employees through a trust managed on their behalf. ESOPs are a type of retirement plan that allows employees to have a stake in the company's success and can provide tax benefits for both the company and the employees.