Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Resource Mobilisation

Question:
Which of the following method involves offering shares to the employees by a company?
Options:
Rights Issue
Employee Issue
Private Placement
Stock Options.
Correct Answer:
Stock Options.
Explanation:
Stock options or offering shares to the employees has gained much popularity in many countries of the world. This method enables employees to become shareholders and share the profits of the company leading to higher efficiency and Low labour turnover.