Carson is involved in a defined contribution plan where he actually owns part of his company without his having to purchase stock.Instead his company contributes its stock to his plan.Because of this,Carson feels more connected to the business and is motivated to ensure its success.Carson is participating in a(n)________.
A) profit sharing plan
B) employee stock purchase plan
C) ESOP
D) 401(k)
E) pension plan

Question

Quizplus · Accepted Answer

Carson is participating in an Employee Stock Ownership Plan (ESOP), where the company contributes stock to his plan instead of the employee purchasing stock. ESOP participants become part-owners of the company and are motivated to ensure its success.

Carson Is Involved in a Defined Contribution Plan Where He