--%>

Define Employee Stock Ownership

Employee Stock Ownership: It is a qualified, defined contribution, employee benefit (that is, ERISA) plan designed to invest mainly in the stock of sponsoring employer. ESOPs are "qualified" in the logic that the ESOP's sponsoring company, the selling share-holder and participants receive different tax advantages. ESOPs are frequently employed as a corporate finance policy and are too employed to align the interests of a company's employees with such of company's share-holders.

   Related Questions in Managerial Accounting

  • Q : Management accounting as an information

    Explain Management accounting as an information system in brief?

  • Q : Effect of illegal obligations on cost

    Normal 0 false false

  • Q : Define Responsibility Center

    Responsibility Center: It is an organizational unit headed by the manager or a group of managers who are responsible for its actions. The responsibility centers can be measured as revenue centers (that is responsible for revenue or sa

  • Q : Allocating resources in decision making

    Write down a short note on the Allocating resources in decision making process?

  • Q : Define Support Costs Support Costs :

    Support Costs: Costs of activities are not directly related with the production. Typical illustrations are the costs of automation support, postage, communications, process engineering, and purchasing.

  • Q : Changing responsibilities of the

    Write a short note on the changing responsibilities of the management accountant?

  • Q : Define Management Accounting Give a

    Give a brief introduction of the term ‘Management Accounting’. And also write down its objectives?

  • Q : Cash coverage of growth A financial

    A financial analysis tools that measures the need for financing. The formula is the cash-flow from operating activities divided by the cash paid for long-term asset. Cash paid for long-term assets can be found on the statement of cash-flow, in the investing-activities

  • Q : Capital gain The increase in value that

    The increase in value that the owner of a capital asset receives when the asset is sold. The owner pays tax on that gain or increases, at a lower rate if the assets that are sold are capital asset, such as factory buildings, rather than assets that are sold in the nor

  • Q : Capital account An account used in a

    An account used in a partnership to record an individual partner's investment in the partnership plus the indi- vidual's share of any undistributed partnership income. In a corpo- ration, the equity sections have two parts: the contributed capital and retained earning