AACSB Analytical Thinking Accessibility Keyboard Navigation Blooms Understand

Aacsb analytical thinking accessibility keyboard

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AACSB: Analytical ThinkingAccessibility: Keyboard NavigationBlooms: UnderstandLearning Objective: 13-04 Explain how organizations link pay to their overall performance.Level of Difficulty: 2 MediumTopic: Pay for Organizational Performance105.Which of the following is a reason for ESOPs' popularity? A.ESOPs provide tax advantages to employers.B. ESOPs provide very high risk-free retirement income.C. Employees can use ESOPs to buy their company during financial crises.D. ESOPs must invest at least 51 percent of its assets in the company's own stocks.E. The employees are provided with many more stocks than they actually own.ESOPs can be attractive to employers. Along with tax and financing advantages, ESOPs give employers a way to build pride in and commitment to the organization.AACSB: Analytical Thinking
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Accessibility: Keyboard NavigationBlooms: UnderstandLearning Objective: 13-04 Explain how organizations link pay to their overall performance.Level of Difficulty: 2 MediumTopic: Pay for Organizational Performance106.By law, what is the minimum percentage of assets that an ESOP must invest in its company's stock? A. 10B. 26C.51D. 60E. 76By law, an ESOP must invest at least 51 percent of its assets in the company's ownstock.AACSB: Analytical ThinkingAccessibility: Keyboard NavigationBlooms: RememberLearning Objective: 13-04 Explain how organizations link pay to their overall performance.Level of Difficulty: 1 EasyTopic: Pay for Organizational Performance
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107.Employee stock ownership plans (ESOPs) are attractive to employers. Along with tax and financing advantages, ESOPs give employers a way to build pride in and commitment to the organization. Which of the following statements weakens this argument? A. Employees are not allowed to participate in general body meetings as shareholders.B. The stocks within the trust are too widely diversified to earn high returns.C. The stock earnings are taxed at high rates.D. Employees are forced to return the stock profits to the organization.E.Risks involved will directly affect employees' retirementincome.A disadvantage of ESOPs is that they carry a significant risk for employees. By law,an ESOP must invest at least 51 percent of its assets in the company's own stock in contrast to other kinds of stock funds that hold a wide diversity of companies. Problems with the company's performance therefore can take away significant value from the ESOP. Many companies set up ESOPs to hold retirement funds, so these risks directly affect employees' retirement income.AACSB: Reflective ThinkingAccessibility: Keyboard NavigationBlooms: AnalyzeLearning Objective: 13-04 Explain how organizations link pay to their overall performance.Level of Difficulty: 3 HardTopic: Pay for Organizational Performance
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108.A major problem with ESOPs is that: A.they carry a significant risk for employees.
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