Role of business: Types of payments

Question 1

Wage

Answer 1

Money received by workers, usually on an hourly/daily basis, for services they provide an employer.

Question 2

Salary

Answer 2

A fixed regular payment, usually paid on a fortnightly or monthly basis but often expressed as an annual sum, made to permanent employers of business.

Question 3

Bonuses

Answer 3

Bonuses are a sum of money added to a person’s wage’s as a reward for good performance.

Question 4

Commission

Answer 4

The percentage of sales price received by a salesperson for hers or his services.

Question 5

Fringe benefits

Answer 5

An extra benefit supplementing an employee’s money wage or salary; for example a company car, private health care etc.

Question 6

Dividends

Answer 6

Part of a businesses profit divided among shareholders.

Question 7

Overtime

Answer 7

Time during which work is done outside of regular work hours. Such time is usually paid at higher rates.