Read the following statements and answer the question.
Assertion: Copartnership induces the employees to contribute for the growth of the organisation.
Reasoning: The allotment of shares creates a feeling of ownership in the employees.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Assertion: Copartnership induces the employees to contribute for the growth of the organisation. This is true.
Reasoning: The allotment of shares creates a feeling of ownership in the employees. This is true.
The assertion suggests that copartnership encourages employees to contribute to the organization's growth, and the reasoning explains that the allotment of shares fosters a sense of ownership among employees, which in turn motivates them to contribute more effectively. Thus, assertion and reason is true and explain why assertion is true.
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.