Georgeanne Works in a Company for Which Her Primary Job

question 15

Multiple Choice

Georgeanne works in a company for which her primary job function is the sale of company products to consumers. She receives a percentage of each sale as part of her compensation. Her compensation contains a ________ element.

• A) Piece-rate
• B) Commission
• C) Pay-for-performance
• D) Nonexempt

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Definitions:

Stock Dividend

A distribution of additional shares of a company to its shareholders instead of paying cash dividends, often used to conserve cash while still rewarding investors.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which often bears no relation to its market value.

Common Stock Dividends Distributable

A liability account that represents dividends declared by a company but not yet distributed to shareholders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, without changing the shareholders' equity.