### What is a bonus? - [ ] A fixed regular payment paid to an employee - [ ] A commission earned from sales - [x] Compensation paid to an employee for achieving a specific goal - [ ] An expense reimbursement > **Explanation:** A bonus is a form of compensation paid to an employee or a group of employees as a reward for achieving specific goals or exceptional performance, beyond their regular salary or commission. ### When is a signing bonus typically awarded? - [x] At the time of hiring - [ ] After the completion of a project - [ ] During an employee’s annual review - [ ] At the end of the fiscal year > **Explanation:** A signing bonus is a one-time payment awarded to new hires as an incentive for joining the company. ### Are bonuses subject to federal and state taxes? - [x] Yes - [ ] No > **Explanation:** Bonuses are considered part of an employee’s taxable income and therefore are subject to federal and state taxes. ### What primarily distinguishes a bonus from a commission? - [ ] The frequency of payment - [x] The basis of the reward - [ ] The amount paid - [ ] The tax implications > **Explanation:** A bonus is a supplementary payment for achieving predefined objectives or excellent performance, whereas a commission is directly linked to sales transactions. ### Can bonuses be granted in non-monetary forms? - [x] Yes - [ ] No > **Explanation:** Bonuses can often be given in non-monetary forms such as stock options, gifts, or extra time off. ### Profit sharing is a form of what? - [ ] Salary - [ ] Commission - [x] Incentive - [ ] Reimbursement > **Explanation:** Profit sharing is an incentive provided to employees where they receive a share in the company’s profits as a reward for their contributions. ### Which type of bonus is common during the holiday season? - [x] Holiday bonus - [ ] Signing bonus - [ ] Annual bonus - [ ] Project completion bonus > **Explanation:** A holiday bonus is typically given during the holiday season as a gesture of appreciation to employees. ### What is the main purpose of an incentive bonus? - [ ] To replace regular pay - [ ] To cover additional work-related expenses - [x] To motivate employees to achieve specific goals - [ ] To reduce employee taxes > **Explanation:** An incentive bonus is designed to motivate employees to achieve specific targets or enhance performance. ### In which form can employees most commonly receive bonuses? - [x] Financial compensation - [ ] Additional workload - [ ] Decreased salary - [ ] Increased taxes > **Explanation:** The most common form of receiving bonuses is through financial compensation, though non-monetary rewards are also given. ### What is an important factor for eligibility to receive a bonus? - [ ] The employee’s age - [ ] The length of employment - [x] The achievement of predefined goals - [ ] The time of year > **Explanation:** Eligibility for receiving a bonus typically depends on the achievement of predefined goals set by the company.