Which type of compensation method works by performance bonus?
A) Profit sharing
B) Revenue sharing
C) Piece rate
D) All of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

All the listed compensation methods involve performance-based bonuses. Profit sharing involves distributing a portion of the company's profits to employees, incentivizing them to work towards the company's profitability. Revenue sharing involves sharing a percentage of the revenue generated, often seen in sales roles or industries where revenue generation is directly tied to individual or team performance. Piece rate pays employees based on the amount of work they complete, directly linking compensation to performance output.

Which Type of Compensation Method Works by Performance Bonus