A unique form of compensation that is not based on hours worked or a set yearly salary, but rather on an employee's revenue output.

The correct answer is A. Commission. Commission (A) is correct because it is pay tied directly to the sales or revenue an employee generates - the more they sell, the more they earn - making it entirely independent of hours worked or a fixed salary. It's the standard model for salespeople and real estate agents…

Question

A unique form of compensation that is not based on hours worked or a set yearly salary, but rather on an employee’s revenue output.

Options

ACommission
BProfit
CAssignment
DAuthority

How the community answered

(23 responses)

A
74% (17)
B
4% (1)
C
13% (3)
D
9% (2)

Explanation

Commission (A) is correct because it is pay tied directly to the sales or revenue an employee generates - the more they sell, the more they earn - making it entirely independent of hours worked or a fixed salary. It's the standard model for salespeople and real estate agents.

Profit (B) refers to a company's financial gain after expenses, not a compensation structure for individual employees. Assignment (C) is a task or duty given to someone, unrelated to pay structure. Authority (D) refers to power or decision-making rights within an organization, not compensation.

Memory tip: Think "commission = commission from a sale" - the word itself carries the sales context. If someone earns based on what they bring in, that's commission.

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