Which term describes an agreed-upon target-based additional pay for meeting goals?

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Multiple Choice

Which term describes an agreed-upon target-based additional pay for meeting goals?

Explanation:
This question tests incentive pay—pay given in addition to base salary when predefined targets are met. The term described is a bonus, which is extra compensation agreed upon in advance and earned by reaching specific goals. It isn’t about benefits (ongoing perks), certification (a credential earned), or coaching (training or guidance). Bonuses can be tied to annual, quarterly, or project goals and may be discretionary or formula-driven, always serving as a target-based reward for performance.

This question tests incentive pay—pay given in addition to base salary when predefined targets are met. The term described is a bonus, which is extra compensation agreed upon in advance and earned by reaching specific goals. It isn’t about benefits (ongoing perks), certification (a credential earned), or coaching (training or guidance). Bonuses can be tied to annual, quarterly, or project goals and may be discretionary or formula-driven, always serving as a target-based reward for performance.

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