5. Rewards

Incentives — Quiz

Test your understanding of incentives with 5 practice questions.

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Practice Questions

Question 1

Which of the following is a key characteristic of an effective incentive plan?

Question 2

Which of the following best describes how a bonus structure can be linked to performance?

Question 3

What is an important consideration when designing a long-term incentive plan?

Question 4

An employee’s base salary is $70,000. The company offers a short-term incentive plan that provides a bonus of 12% of the base salary if the employee exceeds performance targets. If the employee exceeds the targets, what is the bonus amount?

Question 5

Which of the following is a common feature of a bonus structure tied to organizational goals?