When a small business owner pays a commission in addition to a basic salary, it is called ________.
A)a bonus
B)profit sharing
C)a salary
D)hybrid compensation

Question

Quizplus · Accepted Answer

When a small business owner pays a commission in addition to a basic salary, it is called hybrid compensation. This type of compensation structure is used to incentivize employees to perform better and increase sales, as they have the potential to earn more based on their performance. It combines the security of a base salary with the potential for increased earnings through commissions. A bonus is a one-time payment for exceptional performance, while profit sharing involves distributing a portion of the profits among all employees. A salary is a set amount paid to an employee on a regular basis.

When a Small Business Owner Pays a Commission in Addition