SQA National 5 Business Management Practice Exam 2026 - Free Business Management Practice Questions and Study Guide

The compensation method that typically represents a one-time bonus for achieving specific targets is the bonus. Bonuses are often awarded based on performance metrics or reaching certain goals set by the company. They are distinct from other forms of compensation because they do not form a part of regular earnings; instead, they are additional payments that reward employees for exceptional work or reaching milestones.

In contrast, salary refers to a fixed regular payment received by employees, typically on an annual basis, regardless of performance. Commission serves as a variable pay based on sales performance or other measurable activities, providing ongoing compensation linked to individual output. Lastly, piece rate compensation involves paying employees a set rate for each unit they produce or complete, incentivizing productivity in a continuous manner. Each of these methods serves different purposes, but the bonus uniquely rewards achievements and targets within a specified period.