ESOPs are a potential source of funding used by existing companies that have low to moderate confidence in the stability of their future earnings and cash flow.

Question

Quizplus · Accepted Answer

ESOPs (Employee Stock Ownership Plans) are not a source of funding; they are a way for employees to own shares in the company. They are used for employee benefits and incentives, not for raising capital.

ESOPs Are a Potential Source of Funding Used by Existing