MGT EXAM QUESTIONS AND
ANSWERS 2026 VERIFIED.
Base Salary - ANS A fixed amount of pay that can increase based on an employee's skills,
knowledge, or competencies rather than just tenure.
Merit Pay - ANS Permanent increases to base salary awarded based on individual
performance, typically during annual reviews.
Lump-Sum - ANS A one-time payment tied to performance that does not increase base
salary.
Commission - ANS Pay based on a percentage of sales or revenue generated by an employee.
Piece-Rate Pay - ANS Employees are paid a fixed amount per unit produced or task
completed.
Individual Bonus - ANS A variable payment awarded for achieving specific individual goals or
performance targets.
Team Bonus - ANS Bonus awarded to a group or team when collective goals are achieved.
Organizational Bonus - ANS Bonus based on overall company performance such as
profitability or revenue goals.
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, Spot Bonus - ANS Immediate, often smaller, rewards given for exceptional performance or
behavior.
Project Bonus - ANS Compensation tied to the successful completion of a specific project or
milestone.
Stock Options - ANS The right to purchase company stock at a fixed price in the future; value
depends on stock price growth.
Restricted Stock Units - ANS Shares granted to employees that vest over time or upon
meeting performance conditions.
Profit Sharing - ANS Employees receive a portion of company profits, typically distributed
annually.
Skill Based Pay - ANS Employees are paid more as they acquire and demonstrate new job-
related skills.
Competency Based Pay - ANS Compensation tied to broader competencies like leadership or
communication.
Autonomy - ANS The degree of independence and control employees have over how they
complete their work.
Purpose - ANS A sense that one's work has meaning and contributes to something larger
than oneself.
Achievement - ANS The feeling of accomplishment from meeting goals or completing
challenging tasks.
Personal Growth - ANS Opportunities for self-improvement, learning, and development as an
individual.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 6
ANSWERS 2026 VERIFIED.
Base Salary - ANS A fixed amount of pay that can increase based on an employee's skills,
knowledge, or competencies rather than just tenure.
Merit Pay - ANS Permanent increases to base salary awarded based on individual
performance, typically during annual reviews.
Lump-Sum - ANS A one-time payment tied to performance that does not increase base
salary.
Commission - ANS Pay based on a percentage of sales or revenue generated by an employee.
Piece-Rate Pay - ANS Employees are paid a fixed amount per unit produced or task
completed.
Individual Bonus - ANS A variable payment awarded for achieving specific individual goals or
performance targets.
Team Bonus - ANS Bonus awarded to a group or team when collective goals are achieved.
Organizational Bonus - ANS Bonus based on overall company performance such as
profitability or revenue goals.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 1 OF 6
, Spot Bonus - ANS Immediate, often smaller, rewards given for exceptional performance or
behavior.
Project Bonus - ANS Compensation tied to the successful completion of a specific project or
milestone.
Stock Options - ANS The right to purchase company stock at a fixed price in the future; value
depends on stock price growth.
Restricted Stock Units - ANS Shares granted to employees that vest over time or upon
meeting performance conditions.
Profit Sharing - ANS Employees receive a portion of company profits, typically distributed
annually.
Skill Based Pay - ANS Employees are paid more as they acquire and demonstrate new job-
related skills.
Competency Based Pay - ANS Compensation tied to broader competencies like leadership or
communication.
Autonomy - ANS The degree of independence and control employees have over how they
complete their work.
Purpose - ANS A sense that one's work has meaning and contributes to something larger
than oneself.
Achievement - ANS The feeling of accomplishment from meeting goals or completing
challenging tasks.
Personal Growth - ANS Opportunities for self-improvement, learning, and development as an
individual.
@COPYRIGHT ALL RIGHTS RESERVED PAGE 2 OF 6
