Nick Works for an Electronics Store

question 24

Multiple Choice

Nick works for an electronics store. His entire compensation is based on an 8 percent commission he is paid on all the sales he makes minus merchandise returns. This is an example of a(n)

• A) straight salary plan.
• B) quota-bonus plan.
• C) equity-based compensation.
• D) incentive compensation plan.
• E) cafeteria plan.

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Definitions:

Anecdotal

pertains to information or evidence based on personal accounts, observations, or non-scientific observations, rather than hard data or research.

Empirically Tested

Examined or verified through observation and experiment rather than theory or pure logic.

Quantitative

Pertaining to or measurable by the quantity of something rather than its quality.

Skills Approach

A perspective on leadership that emphasizes the importance of developing certain skills and abilities, such as technical, human, and conceptual skills, for effective leadership.