Which term describes a percentage of a sale price paid to a salesperson?

Which term describes a percentage of a sale price paid to a salesperson?

• A. Commission
• B. Tax
• C. Tip
• D. Fee

Answer: (A)

This is about how a salesperson is paid when a sale closes. A commission is a payment to the salesperson that is a percentage of the sale price. This setup makes the earnings of the salesperson rise or fall with how much they sell, which motivates them to close more deals. For example, if a product sells for $2,000 and the commission rate is 6%, the salesperson earns $120. Taxes are government charges on the sale or income, tips are voluntary gratuities from customers, and a fee is a fixed charge for a service; none of these are the standard percentage-based pay that commission describes.

This is about how a salesperson is paid when a sale closes. A commission is a payment to the salesperson that is a percentage of the sale price. This setup makes the earnings of the salesperson rise or fall with how much they sell, which motivates them to close more deals. For example, if a product sells for $2,000 and the commission rate is 6%, the salesperson earns $120. Taxes are government charges on the sale or income, tips are voluntary gratuities from customers, and a fee is a fixed charge for a service; none of these are the standard percentage-based pay that commission describes.