DECA Sports and Entertainment Marketing Practice Exam

Which term refers to a specific amount paid annually for a job regardless of hours worked?

1. Wage

2. Commission

3. Salary

4. Bonus

The correct answer is: Salary

The correct answer is salary. Salary is defined as a fixed amount of money paid to an employee on an annual basis, regardless of the number of hours they work. This compensation method is typical in many professional occupations where employees are expected to complete their tasks without being paid extra for overtime. In contrast, wage typically refers to pay based on the amount of time worked, often calculated hourly. Commission is a form of compensation based on the sales an employee generates, incentivizing performance rather than providing a fixed income. A bonus, on the other hand, is a supplementary payment that is usually given as a reward for performance or company profitability, and it is not a guaranteed part of an employee's income. Understanding these distinctions clarifies how salary is recognized in the workplace as a stable, predictable form of compensation.