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If you open a new car dealership in your town, which of your employees would receive salaries, be paid wages, and receive commissions?

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Final answer:

Managers, executives, and officials at a new car dealership are likely to receive salaries, while clerical or office staff, and installation and repair technicians may be paid hourly wages. Sales employees could earn commissions in addition to any base salary or wage.

Step-by-step explanation:

If you open a new car dealership in your town, different employees would have various compensation structures based on their roles. The individuals who would likely receive salaries are your managers, executives, or officials, as they often work in supervisory or administrative capacities and their pay is not typically tied directly to sales or hours worked.

Employees that could be paid wages tend to be in roles such as clerical or office staff, installation and repair technicians, and workers in construction or mining related to maintaining the dealership facilities. These individuals are often compensated at an hourly rate for their work.

Commissions are traditionally earned by sales employees, who receive a percentage of the sales they generate. This incentivizes them to sell more vehicles and usually supplements a base salary or hourly wage.

Considering these compensation structures is important in planning how to staff and operate your new business efficiently. Different roles provide different incentives which can impact employee behavior and their effectiveness in their positions.

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