Which of the following statements is true regarding an employee stock ownership plan (ESOP)?
A) Under this plan employees acquire stock often at below-market prices.
B) Research on ESOPs indicates that it does not affect employee satisfaction.
C) ESOPs for top management tend to increase unethical behaviour.
D) Research on ESOPs indicates that ESOPs drastically improve employee performance.
E) ESOPs are also called competency-based pay plans.

Question

Quizplus · Accepted Answer

An ESOP allows employees to acquire stock often at below-market prices, providing a financial benefit to the employees.

B, C, D, and E are not true statements regarding ESOPs. Research on ESOPs has found mixed results on employee satisfaction and performance, and the plan does not necessarily lead to unethical behavior. ESOPs are not the same as competency-based pay plans.

Which of the Following Statements Is True Regarding an Employee