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Business Studies · 2023 · 4 marks
CBSE 2023 · Region 1 · Set 1 · Q27
‘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…
‘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
(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 $\displaystyle 2$)
(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.
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CBSE Class 12 Business Studies past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.