Merit Pay Differs from Bonus Programs in What Way

question 57

Multiple Choice

Merit pay differs from bonus programs in what way?

• A) Merit pay raises the employee's base pay permanently; bonuses do not.
• B) Bonuses are nonfinancial rewards; merit pay is a financial reward.
• C) Merit pay is disbursed several times a year; bonuses are given on a yearly basis.
• D) Bonuses are used much less often than merit pay in individual-based pay plans.

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Definitions:

Benefits-received Principle

The concept that the amount of tax an individual pays should be related to the level of benefits they receive from government services.

Hunting Licenses

Permits issued by a government or authorized entity allowing individuals to hunt wildlife during specified periods and under certain conditions.

Wildlife Stocking Programs

Initiatives aimed at replenishing or introducing species into natural habitats for conservation or recreational purposes.

Tax Shifting

The process whereby the economic burden of a tax is passed from one group to another, such as from producers to consumers.