Ed Works for Lanier Business Products as a Sales Representative

question 54

Multiple Choice

Ed works for Lanier Business Products as a sales representative.He receives a straight commission.In weeks when his earned commission is less than $600,the company loans him enough money against future commissions to allow him to receive $600.In future weeks,when Ed earns more than $600,the extra is used for repaying the previous loan.For Ed the guaranteed $600 is his:

• A) sales quota.
• B) activity quota.
• C) draw.
• D) bonus.
• E) straight salary.

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Definitions:

Consumer Price Index

An index measuring the change over time in the price of a basket of consumer goods and services, often used to assess inflation.

Year 3 Dollars

A term used to adjust financial figures according to inflation or deflation, making them comparable to the value of money in the third year of a specific reference period.

Food Expenditures

The amount of money spent by households or individuals on food products, either at home or in dining establishments.

Nominal Box Office Receipts

The total amount of money earned from ticket sales for movies at theaters, not adjusted for inflation.