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_____ is a voluntary scheme on the part of the company to encourage employees’ participation in the company.*Primary marketSecondary marketEmployees Stock Option Plan (ESOP)Underwriter guaranteesProject appraisal

Question

_____ is a voluntary scheme on the part of the company to encourage employees’ participation in the company.*Primary marketSecondary marketEmployees Stock Option Plan (ESOP)Underwriter guaranteesProject appraisal

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Solution

The Employees Stock Option Plan (ESOP) is a voluntary scheme on the part of the company to encourage employees’ participation in the company.

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What does an ESOP offer to employees that profit sharing does not?Monetary benefitsOwnership in the companyRegular payoutsFixed compensation

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