Melanie has worked for 20 years for a manufacturer of specialized paint for the auto industry.Melanie stayed with the company rather than taking other job offers because of the generous ESOP,which has offset the somewhat lower than market pay.Which of the following statements is FALSE?

Question

Quizplus · Accepted Answer

ESOPs, or employee stock ownership plans, do involve risk for employees, as the value of the company's stock can fluctuate and employees may lose money if the company performs poorly or goes bankrupt. Therefore, statement A is false. Statements B, C, and D are all true. Employee ownership through an ESOP can encourage greater employee engagement and commitment to the company's success, and in Melanie's case, it was a successful tool for retaining her as an employee. However, employees should be aware that the value of an ESOP can be influenced by external factors, such as the overall economy or changes in the industry, and may not always be a reliable source of retirement savings.

Melanie Has Worked for 20 Years for a Manufacturer of Specialized