Q. Which among the following is the most reasonable idea behind issuing the “sweat equity” by the companies now a days?
Answer: To retain the best employees
Notes: Sweat equity refers to the ownership stake given to employees in exchange for their hard work and contributions, rather than cash. Companies issue sweat equity primarily to retain top talent, incentivizing them to stay and perform well. This practice aligns employee interests with company success, fostering loyalty and motivation. Notably, companies like Google and Facebook have utilized sweat equity to attract and retain skilled employees, enhancing innovation and productivity.