When a Small Business Owner Pays a Commission in Addition

question 42

Multiple Choice

When a small business owner pays a commission in addition to a basic salary, it is called ________.

• A)a bonus
• B)profit sharing
• C)a salary
• D)hybrid compensation

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Definitions:

Parol Evidence Rule

A legal rule that excludes the admission of oral statements, written agreements outside the contract, or preliminary agreements in interpreting a written contract.

Parol Evidence Rule

The parol evidence rule is a legal principle that prevents parties in a written contract from presenting external evidence that contradicts or adds to the written terms of the contract.

Statute Of Frauds

A legal concept that requires certain types of contracts to be written and signed in order to be legally enforceable.

At Will

Refers to employment arrangements where either the employer or employee can end the employment relationship at any time, for any reason not prohibited by law, and without prior notice.