Incentives are what encourage individuals to take a specific decision, usually that would benefit them. For example, an employee may be offered a bonus for meeting their objectives. Or, a firm may face increased competition so is incentivised to invest in developing new product lines and marketing projects to compete. Other examples of incentives include: - Commission - Fringe benefits - Profit Sharing - Wage incentives - Appreciation - Competition - Delegation - Opportunity to progress - Subsidies