Identify the types of direct financial payment from the options given below?

Time based or Performance based

The correct answer is Option (1) → Time based or Performance based

" Direct financial payments are of two types : time based or performance based. A time based plan means salary and wages are paid either daily, weekly or monthly or annually. Performance based plans means salary/wages are paid according to piecework. For example, a worker may be paid according to the number of units produced by him/her. There are many methods to calculate the compensation under various incentive plans to reward performance. Certain pay plans can be created which are a combination of time based pay plus incentives for higher performance. Various plans may be formulated for paying Reprint 2025-26 Business Studies employees time based wage or salary as well as performance based financial incentives and bonuses, and employee benefits.".