To keep commissions paid to salespeople from becoming so high that they become demoralizing to company executives,some companies place upper limits on how much a sales representative can earn.This limit is called a:
A) draw.
B) bonus.
C) base.
D) cap.
E) ground rule.

Question

Quizplus · Accepted Answer

The upper limit placed on how much a sales representative can earn is called a cap. This is done to prevent commissions from becoming too high and demotivating for company executives. A draw refers to a payment made to a sales representative in advance of commissions earned, a bonus is an additional payment made as a reward for good performance, a base is the minimum salary or wage paid to an employee, and a ground rule is a basic principle or guideline that governs behavior or actions. None of these terms accurately describe the upper limit on sales commissions.

To Keep Commissions Paid to Salespeople from Becoming So High