Which of the following have tax and financing advantages and serve as a takeover defense?
A)Pay-for-performance plans
B)PSQs
C)ESOPs
D)Employee groups
E)Company's annual output

Question

Quizplus · Accepted Answer

ESOPs, or Employee Stock Ownership Plans, have tax advantages for both the employer and employees. Employers can receive tax deductions for contributions made to the plan, while employees can receive stock options as part of their compensation, which can appreciate in value over time. Additionally, ESOPs can serve as a takeover defense, as the company's stock is held by the plan and may not be easily sold to an outside buyer.

Which of the Following Have Tax and Financing Advantages and Serve