The portion of a sales rep's compensation that is based on his or her performance is called:
A) fixed pay.
B) stipend.
C) activity quota.
D) incentive pay.
E) salary.

Question

Quizplus · Accepted Answer

Incentive pay is the compensation that is based on a sales rep's performance. This can come in the form of commissions, bonuses, or other incentives tied to achieving specific sales goals.

Answer A, E: Fixed pay and salary typically refer to a base salary that is not tied to performance.

Answer B: A stipend typically refers to a fixed amount of money paid regularly for a specific purpose, such as a living stipend for a student or a small fixed payment for a part-time job. It is not specifically tied to performance.

Answer C: An activity quota is a specific number of tasks or activities that a sales rep is expected to complete, but it is not directly tied to compensation.

The Portion of a Sales Rep's Compensation That Is Based