Which of the Following Is the Primary Advantage of Using

question 70

Multiple Choice

Which of the following is the primary advantage of using a combination of salary and commission as compensation for salespeople?

• A)provides a guaranteed minimum salary
• B)allows freedom to choose own work activities
• C)completely links to performance
• D)offers simple administration

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Definitions:

Sinking Fund Provisions

A requirement for a debtor to set aside funds at regular intervals to repay a bond or loan before its maturity in order to ensure the safety of the investment for creditors.

Bond Issue

The process by which a government or corporation raises funds by issuing bonds to investors, who lend them money in exchange for periodic interest payments and the return of principal at maturity.

Call Provision

A feature of a bond or other fixed-income security that allows the issuer to repurchase and retire the debt before its maturity date.

Par Value

The face value of a bond or stock as stated by the issuer, which is not necessarily indicative of its market value.