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Promotion of a Company

Can employees...

Question

Can employees be a source of funds?

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Solution

Yes, employees can be sources of funds. The organisation that allows its employees to buy their stocks becomes a part of the sources of funds. In other words, employee stock option plans become a source of funds for an organization.

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Q. At present, apart from the basic pay and allowances as a part of compensation, the employees and employers contribute 12% Of basic wages each towards Employees Provident Fund scheme and Employees Pension Fund scheme. A proposal to reduce the contribution by employers and employees to 10% of basic pay and dearness allowance was listed on the agenda for a recent meeting of Employees Provident Fund Organisation held. The stakeholders expressed their reservations about it and they feel that it should be continued at 12%. Explain any two needs as suggested by Maslow's Need Hierarchy Theory, which will not be satisfied by the incentives discussed above.

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