Answer option C is correct.

Commissions provide incentives to sales employees by paying them a percentage of the sale price for

products and services sold to a customer.

Commission is a type of incentive to sales employees. The company pays them a percentage of the

sale price for products and services sold to a customer. Commission may serve as the entire cash

compensation package, or it may be provided in combination with a base salary.

Answer option B is incorrect. Base pay is the amount of compensation that the employer and the

employee agree will be paid for the performance of particular duties.

Answer option D is incorrect. Hazard pay is additional pay for dangerous or risky working conditions.

Answer option A is incorrect. Geographic pay ensures that employees working in different locations

are paid at rates competitive in the labor market for specific jobs and locations.

Chapter: Compensation and Benefits

Objective: Total Rewards Defined