Outcome # 6 Flashcards
1
Q
employee stock ownership plans (ESOPs)
A
Stock plans in which an organization contributes shares of its stock to an established trust for the purpose of stock purchases by employees
2
Q
Advantages of ESOPs
A
increase employees’ pride of ownership
increase productivity and help the organization
prosper and grow
3
Q
ESOPS - Drawbacks
A
the more retirement income comes from these plans, the more dependent a pensioner becomes on the price of company shares
4
Q
ESOPS - Drawbacks
A
may become demotivated and frustrated if the share price falls,
even though they have worked productively.
