Assume that you work for a business in which the entrepreneur/owner wants to transfer ownership of the business to the employees. The entrepreneur sets up an Employee Stock Ownership Trust which borrows money and buys shares of stock from the business. These shares will later be transferred to the employees. This form of transfer is known as
A) bonus transfer plan.
B) leveraged plan.
C) transfer of ownership plan.
D) limited partnership plan.
E) None of the above.

Question

Quizplus · Accepted Answer

This form of transfer is known as a leveraged plan, in which the Employee Stock Ownership Trust borrows money to buy shares of stock from the business to transfer ownership to employees.

Assume That You Work for a Business in Which the Entrepreneur/owner