The owner of a hardware store decides to pay an incentive to his salespeople based on their ability to sell products to industrial buyers.Each salesperson would receive a share of the amount earned from his or her sales.Which of the following incentive systems is being offered to the salespeople in this scenario?
A) Gainsharingplan
B) Profit-sharing system
C) Piece-rate plan
D) Commission
E) Tucker-Davison plan

Question

Quizplus · Accepted Answer

The scenario describes a commission system where salespeople are paid based on their ability to sell products to industrial buyers. The more they sell, the more they earn. The incentive is tied directly to their performance and results, which encourages them to be more productive and focused on achieving sales targets.

The Owner of a Hardware Store Decides to Pay an Incentive