A Commission System of Compensation Reduces the Risk to Workers

question 245

True/False

A commission system of compensation reduces the risk to workers during seasonal periods when business is sluggish.

---

Definitions:

After-Acquired Inventory

Inventory obtained by a company after it has granted a security interest in its inventory to a creditor, which may also fall under the security interest for that creditor.

Financing Statement

A document filed to give public notice of a secured transaction, thereby establishing a lender's security interest in the borrower's collateral.

Avalanche

In finance, an avalanche method refers to a strategy of paying off debts by starting with the highest interest rate debt first.

Security Interest

A legal claim or lien on collateral that has been pledged, typically to obtain a loan, ensuring the right to take possession if repayment is not made.