Question

Which of the following is a form of financial compensation?

Select one:
a. Health insurance
b. Commissions CorrectCommission is an incentive system that pays a fixed amount or a percentage of the employee's sales. Benefits are nonfinancial forms of compensation provided to employees, such as pension plans for retirement, health, disability and so on.
c. Pension plans
d. Paid vacation
e. Child care

Answer 1

Commissions represent a form of direct financial compensation, unlike benefits such as health insurance or pension plans. option (A)

Step-by-step explanation:

Of the options provided for forms of financial compensation, commissions is the correct answer. This is because commissions are a direct form of monetary reward that employees receive, usually based on their performance such as a percentage of sales they generate or a fixed amount for each sale.

This contrasts with other forms of compensation listed such as health insurance, pension plans, paid vacation, and child care, which are considered benefits rather than direct financial payments. Benefits like health insurance and pension plans, including defined benefit and defined contribution plans, as well as contributions to legally required programs like Social Security, unemployment, and worker's compensation insurance, contribute to overall total compensation but are not direct cash payments to employees.