Ashance Inc.,a manufacturing company,includes bonuses based on the year's profits or other measures related to the organization's goals as an incentive method.Sometimes,to gain tax advantages,the actual payment of the bonus is deferred.Which of the following is being exemplified in this scenario?
A) Long-term incentive
B) Balanced scorecard
C) Piecework plan
D) Employee stock incentive plan
E) Short-term incentive

Question

Quizplus · Accepted Answer

Short-term incentives include bonuses based on the year's profits, return on investment, or other measures related to an organization's goals. Sometimes, to gain tax advantages, the actual payment of the bonus is deferred (for example, by making it part of a retirement plan). This scenario exemplifies short-term incentives at Ashance Inc.