Market price of Shares of Anamika Enterprises is ₹150 per share and to reward the managers for good performance, the company has decided to offer them shares at a price of ₹120 per share. What type of incentive is being offered here?
Market price of Shares of Anamika Enterprises is ₹150 per share and to reward the managers for good performance, the company has decided to offer them shares at a price of ₹120 per share. What type of incentive is being offered here?
Solution
✅ Correct Option: 2
Under co-partnership/stock option, employees are offered company shares at a price lower than the market price, making them part-owners and sharing in profits. Offering shares at Rs. 120 against a market price of Rs. 150 is exactly this financial incentive. Hence option 2.
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