Question

All of the following are examples of third-party ownership, except:

A. A key employee plan
B. A cross purchase plan
C. An employee voluntary life insurance plan
D. An entity purchase plan

Answer 1

Third-party ownership refers to the ownership of a business by parties other than the employees or the original owners. Examples of third-party ownership include key employee plans and cross purchase plans. An employee voluntary life insurance plan is not an example of third-party ownership.

Step-by-step explanation:

In the context of employee ownership, third-party ownership refers to the ownership of a business by parties other than the employees or the original owners.

Option A, a key employee plan, is an example of third-party ownership as it involves ownership by a key employee or employees of the business.

Option B, a cross purchase plan, is also an example of third-party ownership as it involves the purchase of shares by one or more employees from other shareholders.

Option C, an employee voluntary life insurance plan, is not an example of third-party ownership as it is a type of employee benefit program.

Option D, an entity purchase plan, is another example of third-party ownership as it involves the business itself purchasing shares from individual employee shareholders.