Target Exam

CUET

Subject

Business Studies

Chapter

Directing

Question:

Which of the following is not a financial incentive?

Options:

Status

Perquisites

Bonus

Stock option

Correct Answer:

Status

Explanation:

The correct answer is Option (1) → Status

Financial incentives are monetary rewards used to motivate employees. Examples include:

  • Bonus – extra payment for good performance.

  • Perquisites – fringe benefits like a car, house, or medical allowance.

  • Stock option – the right to buy company shares at a discounted rate.

Status, on the other hand, is a non-financial incentive because it satisfies psychological and social needs such as prestige, recognition, and respect, rather than providing direct monetary gain.