When a Salesperson Is Paid a Commission Based on Some

question 109

Multiple Choice

When a salesperson is paid a commission based on some aggregate of sales, this is evidence of

• A)gain sharing.
• B)an individual performance award.
• C)objective goal setting.
• D)management discretion.
• E)participative decision making.

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Definitions:

Inventory

The goods and materials held by a company for the ultimate goal of resale or manufacturing into final products.

Consolidated Retained Earnings

The portion of earnings generated by a company and its subsidiaries that is not distributed as dividends but reinvested in the business.

Statement of Financial Position

Another term for the balance sheet, detailing a company's assets, liabilities, and equity at a given point in time.

Share Capital

The funds that a company receives from selling its shares to investors; also known as equity capital.