Given below two statements, one is labelled as Assertion A and the other is labelled as

Reason R

Assertion A: Many companies now enable their employees to share profits or even to participate in company ownership

Reason R: Worker's productivity boosts rewards from employers

In light of the above statements, choose the most appropriate answer from the options

given below:

1. ABoth A and R are correct and R is correct explanation of A
2. BBoth A and R are correct and R is NOT the correct explanation of A
3. CA is correct but R is not correct
4. DA is not correct but R is correct

Pick an option to check yourself, or open the answer below.

Show answer & explanation

Correct answer: A. Both A and R are correct and R is correct explanation of A

Explanation

Profit sharing and employee ownership exist because linking workers' rewards to productivity raises motivation and output.

Note: standard textbooks differ on this one — cross-check with NTA's final answer key.