Which of the following is a major benefit of employee stock ownership plans to stockholders?
A) Increases cash flow
B) Provides ready market to sell stock
C) Limits organizational control to the top management
D) Allows an organization to use of pretax dollars to finance debt

Question

Quizplus · Accepted Answer

Employee stock ownership plans (ESOPs) provide stockholders a ready market to sell stock. Another appealing feature of ESOPs is that they have specific tax advantages for both the organization and the employees.

Which of the Following Is a Major Benefit of Employee