Which of the following makes employee stock ownership plans (ESOPs)less attractive?
A)Less diversification of investment risk
B)Lack of tax and financial advantages
C)High levels of liquidity
D)Inability to serve as a takeover defense
E)Giving employees the right to vote their securities

Question

Quizplus · Accepted Answer

Employee stock ownership plans (ESOPs) typically invest heavily in the employer's stock, which can lead to less diversification of investment risk compared to other retirement plans that invest in a variety of assets. This can make ESOPs less attractive as employees may be putting more of their retirement savings at risk by relying on the success of just one company.

Which of the Following Makes Employee Stock Ownership Plans (ESOPs)less