Which one of the following investment programs invests the savings fund almost entirely in the sponsoring company's stock?

Question

Quizplus · Accepted Answer

ESOP stands for Employee Stock Ownership Plan, which allows employees to invest their retirement savings fund in the sponsoring company's stock almost entirely. It is a type of defined contribution plan that provides tax benefits to both the company and the employees. However, investing solely in the company's stock can be risky, as the value of the stock may fluctuate based on the company's performance. Therefore, it is essential to diversify the investment portfolio to minimize the risk.

Which One of the Following Investment Programs Invests the Savings