1) What is it called when an employee is paid by producing a measurable output?

Answer:

A.

An independent contractor

B.

Piecework

C.

A tipped employee

D.	None of these options

2) Which of the following is NOT an incentive plan?

Answer:

A.

A stock option

B.

Cash for reaching a specified goal

C.

Sick pay

D.

Additional vacation days

E.	Profit-sharing plans

3) Marcus Allensworth is a waiter at a large restaurant. In addition to his tips, he is paid $5.25/hour. The amount of the hourly tip credit that Marcus' employer is utilizing is $ ______

4) When an employee earns a bonus that is considered to be a part of regular earnings, that bonus is classified as a(n) _____ bonus.

Answer:

A.

incentive

B.

discretionary

C.

commission

D.	non-discretionary