Asked by Angie Castro on Jun 04, 2024
Verified
John works for an aerospace company selling satellites to communication companies.He receives a set percentage of the overall sale price of the satellite in the form of compensation.He does not receive a fixed salary or benefits.Which term best describes John's compensation plan?
A) hybrid commission plan
B) leverage commission plan
C) percentage commission plan
D) straight commission plan
Straight Commission Plan
A compensation structure where an employee's earnings are derived entirely from commissions made from the sales they generate.
Percentage Commission
A method of compensation where an employee or agent is paid a percentage of the sales they generate or the deals they close.
- Familiarize oneself with the different pay structures and their defining qualities.
Verified Answer
DA
David AndreasJun 10, 2024
Final Answer :
D
Explanation :
John's compensation plan is a straight commission plan since he is receiving a set percentage of the overall sale price of the satellite as his compensation, and does not receive a fixed salary or benefits.
Learning Objectives
- Familiarize oneself with the different pay structures and their defining qualities.
Related questions
What Is the Most Common Form of Performance Pay Used ...
As the Owner of a Real Estate Firm with Multi-Office ...
Lana Works as a Salesperson at Fashion Galore ...
As the Owner of a Medium-Sized Engineering Consulting Firm,you Decide ...
Which Variable in Executive Compensation Packages Accounts for the Majority ...