Question

Golden Handshake Scheme is associated with
(A) Inviting foreign companies
(B) Private Investment in public enterprises
(C) Establishing Joint enterprises
(D) Voluntary retirement

Answer 1

Hint: A pension plan is a plan for retirement which needs an employer to provide contribution to collection of funds aside for an employees future benefit. This pool of funds is spent on behalf of employees, and the earnings spent on investments make income to the person on their retirement.

Complete answer:
A Golden Handshake Scheme is related to retirement taken by a worker voluntarily. The golden handshake is a contract between an employee and an employer. It is a clause from the contract of an executive employment that offers the executive with an important severance package if in case the executive loses the job through job restructuring, firing, or even voluntarily retirement. This can be in the form of equity, cash or other benefits.The term Golden Handshake was coined around 1960 in Britain. Golden Handshake can be referred to as the payment that is paid to someone because of the early retirement. Sometimes Golden Handshakes are a huge sum of money and certain agreements involve some clause like restraint on workers to start any business for a certain period after their termination.The Golden Handshake Scheme is linked with Voluntary retirement.

Hence, the correct answer is option (D).

Note:Golden handshakes scheme can be controversial. They can break a company's image as large executive payoffs are seen as a result of failure. Golden handshakes scheme also known as Silver Handshake as the amount is not as much as the payment that top executives obtain. Sometimes, non executives also get a Golden Handshake as a bonus.