Multiple choice

Equity shares issued by a company to employees in exchange of making available intellectual assets to the company are known as

  1. Sweat-Equity Shares

  2. Bonus Equity Shares

  3. Buy-back of Equity Shares

  4. None of these

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A Correct answer
Explanation

 A company may attract outsiders to join the company and provide intellectual assets like patents, skills etc. in return of shares in the company. Such type of shares are known as sweat-equity shares.

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