Assertion: Under stock option schemes, employees are offered company shares at a set price which is lower than market price.
Reasoning: The allotment of shares creates a feeling of ownership to the employees and makes them to contribute for the growth of the organisation
Reasoning: The allotment of shares creates a feeling of ownership to the employees and makes them to contribute for the growth of the organisation
Answer & explanation
Correct answer: option 2
Co-partnership/ Stock option: Under these incentive schemes, employees are offered company shares at a set price which is lower than market price. Sometimes, management may allot shares in lieu of various incentives payable in cash. The allotment of shares creates a feeling of ownership to the employees and makes them to contribute for the growth of the organisation.