Which of the following is not a financial incentive?
Which of the following is not a financial incentive?
Solution
Option 1 -> Status is a non-financial incentive that provides recognition, prestige, and position in the organizational hierarchy without direct monetary value.
Option 2 -> Perquisites are financial incentives that include additional benefits like company car, housing, medical facilities, etc., which have monetary value.
Option 3 -> Bonus is a direct financial incentive paid as additional monetary compensation based on performance or achievement.
Option 4 -> Stock option is a financial incentive that gives employees the right to purchase company shares at a predetermined price, providing monetary benefits.
Hence, Option 1: Status -> Status is a non-financial/non-monetary incentive that focuses on psychological satisfaction, recognition, and social standing rather than direct financial benefits, making it different from perquisites, bonus, and stock options which all have direct monetary value -> correct
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