Question

Incentives are not concerned with

• A. Rebate
• B. Exemption from tax
• C. Provision of seed capital
• D. Lumpsum payment

Hint:

Incentives are benefits aimed at motivation or growth — not one-time financial settlements like lump-sum payments.

Answer 1

The Correct Option is D

Step 1: Understanding incentives.
Incentives are benefits, rewards, or concessions given by the government or organizations to encourage certain economic or business activities.
They are designed to motivate entrepreneurs, industries, and employees to improve performance, productivity, or investment.
Step 2: Common forms of incentives.
Incentives may include:
- Rebate: Reduction or refund on taxes or duties.
- Exemption from tax: Relief from paying certain taxes for a specific period.
- Provision of seed capital: Providing initial financial assistance to start a new venture.
Step 3: Nature of lump-sum payment.
A lump-sum payment is a one-time financial transaction or settlement not directly linked to performance or motivation.
It is generally considered a compensation or settlement, not an incentive.
Step 4: Analysis of options.
- (1) Rebate: Related to incentives.
- (2) Exemption from tax: An important type of incentive.
- (3) Provision of seed capital: Encourages entrepreneurship.
- (4) Lumpsum payment: Not an incentive; it is a fixed payment unrelated to motivation or promotion.
Step 5: Conclusion.
Hence, incentives are not concerned with lump-sum payment.