How Does Merit Pay Differ from a Bonus

Multiple Choice

How does merit pay differ from a bonus?

A) Merit pay becomes part of an employee's base pay, but a bonus does not.
B) A bonus becomes part of an employee's base pay, but merit pay does not.
C) Merit pay is linked to individual performance, while a bonus is linked to profits.
D) A bonus is linked to individual performance, while merit pay is linked to profits.
E) Merit pay is limited to a single, lump payment, and a bonus is spread out over a year.