From an employer's perspective, which of the following is the main advantage in setting up an employee stock ownership plan?
A)favourable tax treatment on earnings earmarked for use in the ESOP
B)reduction of financial risk for employees and consequent reduction in employee turnover rate
C)increased protection against union-organizing attempts
D)increased employee productivity

Question

Quizplus · Accepted Answer

From an employer's perspective, the main advantage of setting up an employee stock ownership plan is the favourable tax treatment on earnings earmarked for use in the ESOP. This can provide significant tax benefits for the company and can also be a way to encourage employees to invest in the company's success. The other options listed may also be potential benefits of an ESOP, but they are not the main advantage from the employer's perspective.

From an Employer's Perspective, Which of the Following Is the Main