An Owner of an Enterprise Asks You to Describe the Major

question 10

Multiple Choice

An owner of an enterprise asks you to describe the major components of a compensation system.What would you exclude in your description?

• A) base salary
• B) performance pay
• C) employee benefits
• D) flexible work schedules and some element of job autonomy

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Definitions:

Commission

A service charge assessed by a broker or agent for facilitating a transaction, usually a percentage of the transaction value.

Base Salary

The initial salary paid to an employee, not including any benefits, bonuses, or increases.

Gross Pay

The total amount of money earned by an employee before any deductions or taxes are applied.

Hourly Rate

The financial remuneration allocated for every working hour.