Asked by Wassie rehman on Jul 18, 2024
Verified
Franklin Appliances Inc. is an electrical appliances manufacturing company. It distributes shares of stock to its employees by placing the stock in a trust managed on the employees' behalf. What is Franklin Appliances using in this scenario?
A) Scanlon plan
B) balanced scorecard
C) piecework stock plan
D) employee stock ownership plan
E) differential piece stock plan
Employee Stock Ownership
A program that gives employees ownership interest in the company through stock ownership.
Stock Trust
A legal entity that holds and manages stock investments on behalf of its beneficiaries.
Managed Behalf
Acting or making decisions for another person or entity, typically in a professional or representative capacity.
- Contrast the tasks and achievements of different incentive mechanisms, namely the Scanlon plan, gainsharing, and employee stock ownership plans (ESOPs).
Verified Answer
KA
Katrina AttardJul 18, 2024
Final Answer :
D
Explanation :
Franklin Appliances Inc. is using an employee stock ownership plan (ESOP) in this scenario. This involves distributing shares of stock to employees through a trust managed on their behalf. ESOPs are a type of retirement plan that allows employees to have a stake in the company's success and can provide tax benefits for both the company and the employees.
Learning Objectives
- Contrast the tasks and achievements of different incentive mechanisms, namely the Scanlon plan, gainsharing, and employee stock ownership plans (ESOPs).