18. Financial Incentives Quiz

Which of the following is typically paid per hour worked?

• Bonus

• Salary

• Wages *

• Profit sharing

A piece-rate system is a type of:

• Commission-based pay

• Payment per item produced *

• Salary-based reward

• Fringe benefit

What is the main advantage of commission-based pay?

• Higher overtime rate

• It encourages teamwork

• Clear link between sales and remuneration *

• No financial incentive for performance

Which payment is based on meeting specific targets?

• Profit sharing

• Overtime

• Bonus *

• Fringe benefits

Profit sharing is most effective for:

• Increasing loyalty to the company *

• Enhancing individual performance

• Reducing overtime hours

• Decreasing job satisfaction

What is an example of a fringe benefit?

• Wages

• Bonus

• Company car *

• Overtime pay

Which of the following is NOT considered a financial incentive?

• Commission

• Performance-related pay

• Job enrichment *

• Profit sharing

Salaries are typically paid:

• Monthly *

• Weekly

• Daily

• Per sale

What type of payment is most common for salespeople?

• Salary

• Profit sharing

• Commission *

• Overtime

Overtime is typically paid at what rate?

• The same as regular pay

• Lower than regular pay

• 1.5 or 2 times the regular pay *

• Based on commission