Which of the following typically involves the company taking out a loan to buy a portion of its own stock in the open market?
A) Employee stock ownership plan
B) The use of stock options
C) Profit sharing group incentive plan
D) Current profit sharing

Question

Quizplus · Accepted Answer

The process described in the question is known as a stock buyback or a share repurchase. An employee stock ownership plan (ESOP) allows employees to acquire ownership in the company, but it doesn't involve the company buying back its own stock. Stock options and profit sharing plans also don't involve the company buying back its own stock.

Which of the Following Typically Involves the Company Taking Out