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Solution

✅ Correct Option: 1

In ESOP, 'E' stands for Employee.

ESOP is the abbreviation for Employee Stock Option Plan. It is a scheme where a company grants its employees the option to purchase a specified number of shares at a predetermined price (exercise price) within a given time period.

This benefit is typically offered to retain key employees and align their interests with the company's growth, as employees become part-owners when they exercise these options.

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