Question

Which of the following is a financial incentive?
(a) Promotion (b) Stock Incentive
(c) Job Security (d) Employee Participation

Answer 1

SOLUTION :  

Stock Incentive is a financial incentive.  

Among the given options option (b) Stock Incentive is the answer .

Financial incentive(Monetary incentives):  

The incentives which are directly or indirectly associated with monetary benefits are called monetary incentives. It includes salary, bonus ,commission, retirement benefits, stock incentive and other  financial perquisites like  free house servant, car, medical facility e.t.c.

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Answer 2

Option ➡️ (b) STOCK INCENTIVE.

Stock incentive is a kind of financial incentive. It is a direct monetary incentive wherein the employee is offered the shares of the company at a price lower than the market price. The other three options as given in the question, that is, promotion, job security and employee participation are non-financial incentives that focus on psychological and social needs of the employees.

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