Carson is involved in a defined contribution plan where he actually owns part of his company without his having to purchase stock. Instead his company contributes its stock to his plan. Because of this, Carson feels more connected to the business and is motivated to ensure its success. Carson is participating in a(n)________.
A)profit sharing plan
B)employee stock purchase plan
C)ESOP
D)401(k)

Question

Quizplus · Accepted Answer

Carson is participating in an ESOP (Employee Stock Ownership Plan) where the company contributes its stock to the plan, making the employees owners of the company. This type of plan is designed to motivate employees by incentivizing them to work towards the success of the business, as their own personal wealth will increase as the company grows.

Carson Is Involved in a Defined Contribution Plan Where He