Directing · Class 12 · CBSE · Commerce Business Studies

A company gives its sales employees a cash bonus for achieving sales beyond the prescribed target. This is an example of which type of incentive?

Practice question from Directing (Class 12 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.

easy · MCQ · Q-27D9D7

A company gives its sales employees a cash bonus for achieving sales beyond the prescribed target. This is an example of which type of incentive?

  1. A.Non-financial incentive
  2. B.Financial incentiveCorrect answer
  3. C.Social incentive
  4. D.Status incentive

Solution

A cash bonus directly provides monetary benefit to employees, so it is a financial incentive. Financial incentives are used to motivate employees through monetary rewards.

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