Examlex

Solved

Bonuses Given to Employees Based on Performance Is an Example

question 160

True/False

Bonuses given to employees based on performance is an example of extrinsic reward.


Definitions:

Risk Free Rate

The rate of return on an investment with no risk of financial loss, typically represented by the yield on government bonds.

Market Premium

The additional return an investor expects to receive from a market portfolio compared to the risk-free rate.

Equity Investments

Financial investments in shares of companies, giving the holder ownership interest in the company.

Required Rate

The minimum annual percentage return that an investor expects to earn when investing in a particular security or project, factoring in risk.

Related Questions