Future Business Leaders of America (FBLA) Hospitality Management Practice Test

What is the significance of obtaining a commission in sales?

1. It stabilizes the base salary for employees

2. It increases motivation to sell more products

3. It guarantees a salary increase

4. It is mandatory for all employees

The correct answer is: It increases motivation to sell more products

Obtaining a commission in sales is significant primarily because it serves as a powerful motivator for employees to enhance their sales performance. Commission structures are designed to align the interests of employees with the goals of the organization, encouraging them to sell more products or services. When employees know that their earnings will directly increase based on their sales efforts, they are incentivized to work harder, provide better customer service, and actively seek out new business opportunities. This motivation can lead to higher levels of productivity, ultimately benefiting the company through increased sales and revenue. Furthermore, sales commissions can cultivate a competitive environment where employees strive to outperform each other, fostering a culture of excellence and achievement within the organization.