Which of the following makes ESOPs less attractive?
A)Less diversification of investment risk
B)Increased dependence on individual performance
C)High levels of liquidity
D)Lack of dependence on organizational performance
E)The right they offer employees to vote securities

Question

Quizplus · Accepted Answer

An ESOP must, by law, invest at least 51 percent of assets in its company's stock, resulting in less diversification of investment risk. Consequently, employees risk serious financial difficulties if the company does poorly.

Which of the Following Makes ESOPs Less Attractive