Asked by Carmia Mattox on Jul 27, 2024
Verified
By law, what is the minimum percentage of assets that an employee stock ownership plan (ESOP) must invest in its company's stock?
A) 10
B) 26
C) 51
D) 60
E) 76
Employee Stock Ownership Plan
A program that gives employees the opportunity to buy shares in the company they work for, often at a discounted price.
Company's Stock
Represents ownership shares in a corporation, giving holders a claim on parts of the company's assets and earnings.
Minimum Percentage
The lowest allowable or required fraction or rate of a quantity, often set as a standard or threshold.
- Acquire knowledge on the legal and fiscal considerations of reward strategies, including ESOPs.
Verified Answer
AS
Asiah SheppardJul 28, 2024
Final Answer :
C
Explanation :
The minimum percentage of assets that an ESOP must invest in its company's stock is 51%, as per the law.
Learning Objectives
- Acquire knowledge on the legal and fiscal considerations of reward strategies, including ESOPs.