Future Business Leaders of America (FBLA) Personal Finance Practice Test

Which of the following is typically NOT a method of compensation for workers?

1. Bi-weekly bonuses

2. Commissions

3. Incentives based on performance

4. Fixed monthly salary

The correct answer is: Bi-weekly bonuses

Bi-weekly bonuses are generally considered a method of compensation, but they are distinct from regular pay structures like salaries and commissions. Worker compensation methods typically include fixed salaries, commissions based on sales performance, and performance incentives, all of which are structured to provide workers with consistent or predictable earnings. A fixed monthly salary provides a stable income, while commissions directly tie earnings to performance outcomes. Incentives based on performance further encourage employees to achieve specific goals, linking their compensation to tangible results. In contrast, while bi-weekly bonuses represent additional payments that can reward employees for various achievements or company performance, they are not a core component of a worker's regular compensation package. Instead, they are often seen as a supplemental form of compensation that is awarded periodically, rather than a standard method through which workers are compensated for their ongoing work. Thus, bi-weekly bonuses typically fall outside the traditional framework of compensated methods for workers.