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Employee ownership is a situation in which

a. employees own shares of stock in the company.
b. employees take much pride in their work and make decisions as though they owned the company.
c. employees receive money to purchase stock in the company.
d. only employees own the stock of the company for which they work.
e. employees actually buy a franchise, own it, and operate it on funds borrowed from the company.

Answer :

Employee ownership is a situation in which, employees own shares of stock in the company.

What is an employee stock ownership Plan (ESOP)?

Employees who participate in an employee benefit plan known as an employee stock ownership plan (ESOP) get shares of stock that represent ownership in the company. Employers frequently use ESOPs as a corporate finance approach to balancing the interests of their employees with those of their shareholders because they qualify schemes that provide various tax benefits to the sponsoring company, the selling shareholder, and participants.

As financial rewards result from the company's performance, ESOPs motivate employees to work hard. They also aid in making employees feel more valued and well-paid for the work they do. Distributions from the plan are frequently subject to vesting, which gradually grants employees access to assets given by the company.

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