A(n)________ retirement plan is one in which the company will contribute shares of company stock into the employee's account in place of a cash contribution.The employee does well if the company stock appreciates in value,but can suffer dramatically if the stock depreciates in value.

Question

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This is describing an ESOP, or Employee Stock Ownership Plan. In an ESOP, the company contributes shares of company stock to the employee's retirement account instead of cash. The value of the account will depend on the performance of the company stock, which can be good or bad for the employee.

A(n)________ Retirement Plan Is One in Which the Company Will