Commission - GCSE Business Definition
Reviewed by: Lisa Eades
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Commission is a form of compensation typically offered to salespersons, where they earn a percentage of the sales they generate in addition to their regular salary.
In the context of GCSE Business studies, commission acts as an incentive for employees to increase their sales performance, as their earnings are directly tied to the volume of goods or services they sell. This type of payment is particularly common in sectors such as property sales, retail, and finance. Understanding commission is essential for students as it highlights how businesses can motivate their workforce through financial means.
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