Employee Stock Ownership Plans (ESOPs) Are Attractive to Employers

Multiple Choice

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 statement 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' retirement income.