Human Resources Certification Institute (HRCI) Practice Exam

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The company-issued annual bonuses based on profitability is best represented by which of the following?

A generous employer
An entitlement-oriented incentive
A company recognition program
A way to keep overtime costs down

The correct answer is: A company recognition program

Unlike options A and D, which are not specifically related to profitability and bonuses, option C accurately represents the purpose of the company-issued bonuses. Option B is incorrect because it uses a negative connotation, implying that the bonuses are used as an entitlement rather than a reward for performance and profitability. The correct answer, option C, highlights the company's recognition of its employees' contribution to the overall profitability of the company.