The correct answer is: A. Additional shares.
Capitalization of Reserves is the process of converting a company’s retained earnings or other surplus into share capital. This is done by issuing additional shares to existing shareholders in proportion to their existing shareholdings.
Bonus shares are a type of share that is issued to existing shareholders without any additional payment. They are usually issued as a way of rewarding shareholders or as a way of increasing the company’s share capital without raising any new money.
Incentives are rewards or payments that are given to employees or other stakeholders in order to motivate them to achieve certain goals. They can take many forms, such as bonuses, commissions, or stock options.
Therefore, the correct answer is A. Additional shares.