The Typical Form of the Employee Stock Ownership Plan (ESOP)

Multiple Choice

The typical form of the employee stock ownership plan (ESOP) involves a company:

A) offering restricted stock plans to all its employees, with the aim of retaining these employees rather than rewarding their individual performance.
B) taking out a loan, which is then used to buy a portion of the company's stock in the open market, with the purpose of gradually giving employees a major stake in the ownership of the company.
C) offering shares of stock to its employees only if they remain with the company for a specified period of time.
D) providing its employees with an option to buy its stock in the future at a predetermined fixed price.