When a small business owner pays an individual a percentage of sales, this is called a ________.
A)paycheck
B)bonus
C)commission
D)salary

Question

Quizplus · Accepted Answer

This type of payment arrangement is known as a commission. A commission is a percentage of the sales made by an individual that is paid as compensation. This type of payment is often used in sales positions to incentivize employees to make more sales, as their compensation is directly tied to their performance. It is different from a salary or a paycheck, which is a fixed amount paid on a regular basis, regardless of performance. A bonus is a lump sum payment that is made as a reward for reaching certain goals or objectives.

When a Small Business Owner Pays an Individual a Percentage