Question

Which of the following statements is true of employee stock ownership plans?

Select one:
a. They encourage employees to become involved in strikebreaking.
b. They reduce employee morale and productivity.
c. They are applicable only to senior employees of a firm.
d. They increase the possibility of lockouts.
e. They create a sense of partnership between a firm and its employees.

Answer 1

Employee stock ownership plans (ESOPs) create a sense of partnership between a firm and its employees.

Step-by-step explanation:

The correct statement about employee stock ownership plans (ESOPs). They create a sense of partnership between a firm and its employees.

ESOPs are a type of employee benefit plan that allows employees to acquire ownership in the company they work for. Through ESOPs, employees become shareholders and have a financial stake in the company's success. This creates a sense of partnership between the firm and its employees, as they both benefit from the company's performance.