In which type of contract is the agent paid per unit of output?
A)A commission-based contract.
B)A sharecropping contract.
C)A piece rate contract.
D)A contract with stock options as salary.

Question

Quizplus · Accepted Answer

In a piece rate contract, the agent is paid for each unit of output they produce. This type of contract is often used in manufacturing or assembly line work where the amount the worker produces can be easily measured. A commission-based contract (A) is where the agent is paid a percentage of the sales they make, a sharecropping contract (B) is an agreement in which the landowner allows a tenant to use the land in exchange for a share of the crops produced, and a contract with stock options as salary (D) is when an employee is offered company stock as a form of compensation.

In Which Type of Contract Is the Agent Paid Per