Determine the true statement regarding stock bonus plans, Ask an Expert

Finance

Which of the following statements regarding stock bonus plans and ESOPs is true?

I. They both give employees a stake in the company through stock ownership and allow taxes to be delayed on stock appreciation gains.

II. They both limit availability of retirement funds to employees if an employer's stock falls drastically in value.

III. They both create an administrative and cash-flow problem for employers by requiring them to offer a repurchase option (a.k.a. put option) if their stock is not readily tradable on an established market.

A. I only

B. II only

C. III only

D. I and II only

E. I, II, and III

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9215395

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