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Q.Pay and allowance is an example of ________.

(a) Financial incentive
(b) Non-financial incentive
(c) Both
(a) &
(b)
(d) None of these
Kerala DhseKerala DHSE Plus Two Commerce Board 2023MCQ· 1mImportance★★★★★
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Correct option: (a) Financial incentive — pay and allowances are rewards measured in money, therefore they are monetary/financial incentives.

This one-mark question is from the 'Directing' chapter (Motivation) of the Kerala Plus Two Business Studies syllabus. Incentives are classified as:

  • Financial (monetary) incentives: rewards that can be measured in money — pay and allowances, productivity-linked wage incentives, bonus, profit sharing, retirement benefits, perquisites, stock options, etc. …

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