Which of the following is not true about an ESOP?
a. An ESOP will reduce the amount of voting stock in the hands of employees.
b. An ESOP must be a permanent trusted plan for the exclusive benefit of the employees.
c. The plan participants become eligible for favorable taxation of distributions from the plan.
d. Commercial lending institutions, insurance companies, and mutual funds are permitted an exclusion from income for 50% of the interest received on loans used to finance an ESOP's acquisition of company stock.
e. An ESOP may reduce the potential of an unfriendly takeover.
A
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When a company has performed a service but has not yet received payment, what is the required journal entry to be recorded?
A) Accounts Receivable - Debit; Service Revenue - Credit B) Service Revenue - Debit; Accounts Payable - Credit. C) Service Revenue - Debit; Accounts Receivable - Credit D) No entry is required until the cash is received.
Explain the service recovery system
What will be an ideal response?
Intentional discrimination by an employer against an employee is known as disparate-treatment discrimination
Indicate whether the statement is true or false
Which of the following will not improve a company's gross profit percentage?
A. An increase in the sales price. B. Collecting cash from customers in advance. C. A decrease in the cost of inventory. D. A decrease in the shipping cost for merchandise purchased.