Question

An esop: allows an owner to transfer all or part of his company to the employees as gradually or as quickly as he chooses. works best in companies where pre-tax profits exceed $100,000. is not beneficial to companies with fewer than 15 to 20 employees.

Answer 1

All the options given above about ESOP are TRUE. ESOP is an acronym for Employee Stock Ownership Plan. ESOP is an employee benefit plan designed as an investment stock shares in the sponsoring employer's company. In this type of arrangement, the company has the liberty to transfer the company to its employees at its own discretion. ESOP is only practicable in companies whose pre-tax profits is greater than $100,000 and whose employees are at least twenty in number.