BUSINESS MATH

A. Briefly define the following and give examples that

best describe each term.

SALARY
A salary is the money that
someone is paid each
month by their employer,
especially when they are
in a profession such as
teaching, law, or medicine.

WAGE
A payment is usually of
money for labor or
services, usually according
to a contract and on an
hourly, daily, or piecework
basis, the share of the
national product
attributable to labor as a
factor in production.

INCOME
The term “income” generally
refers to the amount of money,
property, and other transfers
of value received over a set
period of time by individuals
or entities as compensation
for services, payment for
products, returns on
investments, pension
distributions, gifts, and myriad
other transfer of value.

B. Define the following.
COMPENSATION
Compensation is the
remuneration awarded to an
employee in exchange for their
services or individual
contributions to your business.
The contributions can be their
time, knowledge, skills,
abilities and commitment to
your company or a project.
WHAT ARE THE DIFFERENT
TYPES OF COMPENSATION?
INDIRECT COMPENSATION
It is still a monetary in nature -
meaning it has a financial value
that can be calculated - but is not a
direct payment in the form of cash.
DIRECT COMPENSATION
It includes money paid to employees
as cash, such as hourly wages,
salaries, bonuses, and
commission.
NON-MONETARY
a reward to an employee for their
work It can be a free trip award for
the best salesman or benefits
relating to health.
BENEFITS
The definition of a benefit
is something that will
provide an advantage for
others, something you
may receive as
compensation from an
insurance company or an
event to raise money for a
worthwhile cause.
COMPENSATION
STRATEGY
A compensation strategy is
your company's approach to
compensating employees in
terms of pay and benefits. A
strong compensation strategy
is required in order to attract
and retain people who have the
appropriate knowledge, skills,
aptitudes, competencies and
attitudes to get the job done.
WHAT ARE THE FOUR
MAJOR TYPES OF DIRECT
COMPENSATION?
The four major types of
direct compensation are:
hourly wages
salary
commission
bonuses.