Which of the following is NOT normally regarded as being a good reason to establish an ESOP?
A) To enable the firm to borrow at a below-market interest rate.
B) To make it easier to grant stock options to employees.
C) To help prevent a hostile takeover.
D) To help retain valued employees.
E) To increase worker productivity.

Question

Quizplus · Accepted Answer

Granting stock options to employees can be achieved through various means and does not necessarily require the establishment of an Employee Stock Ownership Plan (ESOP). ESOPs are primarily used for purposes such as borrowing at favorable rates, preventing hostile takeovers, retaining employees, and boosting productivity, rather than just facilitating stock options.

Which of the Following Is NOT Normally Regarded as Being