Question

‘Zeto Ltd.’ offers its employees shares at a price which is less than the market price. Identify the incentive offered by the company and state the…

Accepted Answer

(a) Co-partnership/ Stock option Financial incentives are the incentives measurable in direct monetary form/term which serve to motivate people for better performance. Two other financial incentives are: (Any 2) (i) Pay and allowances include basic pay, dearness allowance and other allowances. (ii) Productivity linked wage incentive aims at linking payment of wages to increase in productivity at individual or group level. (iii) Bonus is an incentive offered over and above the wages/ salary to the employees. (iv) Sharing profit with employees serves to motivate the employees to improve their performance and contribute to increase in profits (v) Retirement benefits such as provident fund, pension, and gratuity provide financial security to employees after their retirement. (vi) Perquisites and fringe benefits are offered such as car allowance, housing, medical aid, and education to the children etc., over and above the salary.

‘Zeto Ltd.’ offers its employees shares at a price
which is less than the market price.
(a)
Identify the incentive offered by the company and
state the type of incentive discussed above.
(b)
State two other incentives of the type of incentive
identified in (a) above.

Marking-scheme solution

More from Directing

‘Zeto Ltd.’ offers its employees shares at a pricewhich is less than the market price.(a)Identify the incentive offered by the company and(a)state the type of incentive discussed above.(b)State two other incentives of the type of incentive(b)identified in (a) above.

Marking-scheme solution

More from Directing

‘Zeto Ltd.’ offers its employees shares at a price
which is less than the market price.
(a)
Identify the incentive offered by the company and
state the type of incentive discussed above.
(b)
State two other incentives of the type of incentive
identified in (a) above.