Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Directing

Question:

Under which incentive scheme all the employees offered shares of the company at price which is lower than Market Price?

Options:

Co-Partnership

Perquisites

Retirement Benefits

Profit Sharing

Correct Answer:

Co-Partnership

Explanation:

The correct answer is Option (1) - Co-Partnership

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 line 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. In Infosys, the scheme of stock option has been implemented as a part of managerial compensation.