A plan to transfer ownership from an entrepreneur to employees in which an Employee Stock Ownership Trust is used to borrow money to purchase shares of stock from the business is known as a trust plan.

Question

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This description refers to an Employee Stock Ownership Plan (ESOP), not a "trust plan." ESOPs are used to allow employees to become owners of stock in the company they work for, often through the company borrowing money to purchase shares on behalf of its employees.

A Plan to Transfer Ownership from an Entrepreneur to Employees