Answer to Question #260036 in Management for Paia

Question

Should EMI enter this business? why or why not?

• EMI's strategies and capabilities
• Industry structure and competitive situations
• Market characteristics including customer needs

Answer 1

The EMI is a share option scheme that enables companies to attract and retain key staff by rewarding them with equity participation in the business. The scheme is ideal for smaller, entrepreneurial companies that might not be able to match the salaries paid elsewhere.The Enterprise Management Incentive (EMI) is a tax-advantaged share option scheme designed for smaller companies. The EMI is a share option scheme that enables companies to attract and retain key staff by rewarding them with equity participation in the business.There are two main types of scheme: an Enterprise Management Incentive (EMI) and an Unapproved Option Scheme. These will be explained in detail later in this guide. The Option Pool is the percentage of a company which is reserved for ownership by its employees.