Scenario 7.1 All Season Fitness

question 67

Multiple Choice

Scenario 7.1 All Season Fitness
Ryan works for a small sports equipment and clothing retail store located in the southern interior of BC,All Season Fitness.He just learned that one of his coworkers,who works full time,started one year after he had started at the company is being paid 20% more than he is.He has worked for All Season Fitness for three years part-time while attending Okanagan College business program.Ryan's base pay is minimum wage.The owner of All Season Fitness compensation includes 90 % base pay and 10% individual commissions.The owner believes that rewards and recognition programs play a key role in retaining a good workforce particularly in the sports retail environment,where many of his employees make minimum wage.He provides his student employees flexible work hours and an annual school tuition scholarship of $1000.
-Please refer to Scenario 7.1.Which of the following is an advantage experienced by All Season Fitness,resulting from their sales commission practices?

• A)easily administered pay
• B)improves pay equity
• C)clear link between pay and performance
• D)focuses efforts on one aspect of the work

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Definitions:

Treasury Bill

Short-term government securities issued at a discount from the par value and mature in a year or less, serving as a tool for managing short-term liquidity.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit in the future.

Present Benefits

The advantages or positive outcomes that are received or enjoyed at the current time, as opposed to benefits that may accrue in the future.

Future Benefits

Expected advantages or gains that will be received in the future as a result of current investments or actions.