Question
which of ONE answer correctly explains why shouldnt a business make an employee stock ownership plan its main retirement plan for employees
it is too expensive for a company with low salary budget
it wont cover the business's contractors and consultants
it doesn't deliver equal pay for comparable worth
it is risky to have all one investments be in a single company
it is too expensive for a company with low salary budget
it wont cover the business's contractors and consultants
it doesn't deliver equal pay for comparable worth
it is risky to have all one investments be in a single company
Answers
GPT 3.5
All of the given answers provide valid reasons why a business shouldn't make an employee stock ownership plan (ESOP) its main retirement plan for employees. However, the most comprehensive explanation is that "it is risky to have all investments in a single company." This answer highlights the potential downside of relying solely on the company's stock as the primary retirement asset, as it exposes employees to significant financial risk if the company performs poorly or fails. Diversifying investments is generally considered a prudent strategy to mitigate risk, which is why relying exclusively on an ESOP may not be ideal as the main retirement plan for employees.