The Board at Unicore Systems Corp

question 78

Multiple Choice

The board at Unicore Systems Corp.has decided to allocate 20 percent of the company's shares to its workforce, at a discounted price.Apart from being a valued investment, the plan will allow the employees to take personal responsibility for the firm's performance.Which of the following employee incentive schemes does this best illustrate?

• A) Employee provident fund
• B) Employee gratuity fund
• C) Employee stock ownership plan
• D) Employee emergency loan program

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Definitions:

Historical Cost

The original purchase cost of an asset, as recorded in the financial statements, without adjustment for inflation or market changes.

Original Cost

The purchase price of an asset or investment, including all expenses incurred to get the asset ready for its intended use.

Balance Sheet

A financial statement that summarizes a company’s assets, liabilities, and shareholders' equity at a specific point in time.

Pay Period

The interval of time for which employee wages are calculated and paid, such as weekly, biweekly, monthly.