BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following statements about graduated commission is true?
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The salesperson must reach a quota to be paid any commission.
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As sales increase, the rate of commission increases.
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As sales increase, the rate of commission stays the same.
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As sales increase, the rate of commission decreases.
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Explanation:
Detailed explanation-1: -Graduated Commission. The graduated commission approach involves setting up “tiers” where past a predetermined threshold of sales, an individual’s commission rate goes up. For example, individuals may earn 10 percent on their first $10, 000 in sales, 20 percent in their next $20, 000, and so forth.
Detailed explanation-2: -Variable commission is as it sounds, varying based on the type of sale.
Detailed explanation-3: -A certificate of deposit (CD) is called a “term deposit” because the depositor agrees to keep it with a financial institution for a specified amount of time. The end of that fixed term, whether it’s six months or 60 months, is called the maturity date.
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