Zomato Ltd. decided to offer 10% of its issued capital to its employees at a price lower than its market value. The scheme adopted by Zomato Ltd. is k - Accountancy MCQ CUET Accountancy 2026 | ExamTest.live | ExamTest.live

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Zomato Ltd. decided to offer 10% of its issued capital to its employees at a price lower than its market value. The scheme adopted by Zomato Ltd. is known as an:

A $Private placement of shares$
B $Employees Stock Option Plan$
C $Issue of bonus shares$
D $Employers contribution to EPFO$

Solution & Step-by-step Explanation

An Employee Stock Option Plan (ESOP) is an equity scheme under which a company offers its shares/options to its directors, officers, or employees at a pre-determined price, which is generally lower than the prevailing market price.

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Zomato Ltd. decided to offer 10% of its issued capital to its employees at a price lower than its market value. The scheme adopted by Zomato Ltd. is known as an:

A

Private placement of shares

B

Employees Stock Option Plan

C

Issue of bonus shares

D

Employers contribution to EPFO

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