Future Business Leaders of America (FBLA) Business Management Practice Test

Which statement is true regarding intrinsic rewards?

1. They are often determined by peers.

2. They are usually controlled and distributed by the company.

3. They include tangible benefits like bonuses.

4. They are based on personal achievements.

The correct answer is: They are usually controlled and distributed by the company.

The correct choice highlights that intrinsic rewards are fundamentally linked to personal satisfaction and self-fulfillment derived from one's achievements. Unlike extrinsic rewards, which are tangible benefits that a company can control, such as bonuses or promotions, intrinsic rewards stem from the internal motivation of an individual. For example, feeling a sense of accomplishment after completing a challenging project or gaining personal growth through learning represents intrinsic rewards. The nature of intrinsic rewards focuses on personal achievement rather than external validation or compensation, emphasizing the psychological aspects of satisfaction and motivation in the workplace. This understanding is vital for leaders looking to foster a motivating environment where employees feel fulfilled by their work.