PRC-3 · Chapter 8 · Question 10 of 74
A sales representative receives a fixed monthly amount of Rs. 50,000, plus an additional amount based directly on how many products they sold that month. What are these two compensation elements?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The fixed amount is the base salary; the extra is a performance-based commission or bonus
Explanation
Base salary is the fixed compensation paid regularly, while commissions or bonuses are variable, performance-linked financial rewards.
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