This is a loan from the company to the employee that is carried forward indefinitely until the employee sells enough to repay it.
A) commission-plus-draw plan
B) a recoverable draw
C) a non-recoverable draw
D) an interest-free loan

Question

Quizplus · Accepted Answer

A recoverable draw is a type of advance payment that an employer makes to an employee against future commissions or earnings. Unlike a non-recoverable draw, the recoverable draw must be repaid by the employee if they do not earn enough commissions to cover the advance. This type of loan is carried forward indefinitely until the employee sells enough to repay it, making it a suitable option for employees who have a variable income stream.

This Is a Loan from the Company to the Employee