GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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assistance program
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benefit
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compensation
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employee contract
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Detailed explanation-1: -Commission is a form of incentive compensation that depends on results. Commission bonuses can thus be indexed to turnover before tax, quantity sold and gross margin etc. They are based on the principle “the more I sell, the more I earn”.
Detailed explanation-2: -A bonus is a financial compensation that is above and beyond the normal payment expectations of its recipient. Bonuses may be awarded by a company as an incentive or to reward good performance. Typical incentive bonuses a company can give employees include signing, referral, and retention bonuses.
Detailed explanation-3: -Example: A sales rep earns a 25% commission on every product he sells. If, over the course of a year, he sells 30 products at $1, 000 each, 20 products at $5, 000 each, and 15 products at $10, 000 each, he would earn $70, 000 in sales commissions.