An employee stock ownership plan (ESOP)is a tax-qualified retirement benefit plan that borrows money and uses the cash proceeds to buy a company's stock.

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This statement is true. An ESOP is a type of retirement plan that allows employees to become owners of the company through the purchase of company stock using borrowed funds. The ESOP trust holds the stock until the employee retires or leaves the company, whereupon it is sold back to the company or to another buyer. ESOPs can provide a tax-efficient way for business owners to transfer ownership to their employees.

An Employee Stock Ownership Plan (ESOP)is a Tax-Qualified Retirement Benefit