Ted is retiring in five years and is thinking of selling the business.Ramon,his general manager,tells him that he,the other managers,and the employees want to buy the business from him.Ted sets up a process where all the managers and employees "buy" stock in the company each month through payroll deductions,so that in five years the employees hold 100% of the company.This is an example of:

Question

Quizplus · Accepted Answer

This is an example of an Employee Stock Ownership Plan (ESOP), as the employees are gradually buying stock in the company over time through payroll deductions. The ultimate goal is for the employees to own 100% of the company, which is a common objective of ESOP arrangements.

Ted Is Retiring in Five Years and Is Thinking of Selling