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NEW QUESTION: 1
A payment plan is to be configured to pay a minimum (draw) flat amount of 8,000 per period, which is nonrecoverable. Payment adjustments must be applied only to commission type earnings, and bonus earnings should not be adjusted by the payment plan.
How should you configure the payment plan?
A. Associate the 'Commission' payment group category to "Commission' type plan components. In the Payment Plan, select 'Commission' from the Payment Group Category drop down, enter 8,000 In the Flat Minimum Amount to Pay Participant field, enter 8,000 in the Maximum Payment field, select 'Yes' for the Carry forward Maximum drop down, select
'Yes' for the Minimum Recovery option, and 'Immediate' for the Recovery Start option.
B. Associate the 'Commission' Incentive Type (payment group category) to 'Commission' type plan components. In the Payment plan, select 'Commission' from the Payment Group
Category drop down, enter 8,000 in the Flat Minimum Amount to Pay Participant field, and select 'No' for the Minimum Recovery option.
C. Associate the "Commission" payment group category to 'Commission' type plan components. In the Payment Plan, select 'Commission' from the Payment Group Category drop down, enter 8,000 in the Flat Minimum Amount to Pay Participant field, enter 8,000 in the Maximum Payment field, select "Yes" for the Carry Forward Maximum drop down, and select 'No' for the Minimum Recovery option.
D. Associate the 'Commission' Incentive Type (payment group category) to 'Commission' type plan components. In the Payment Plan, select 'Commission' from the Payment Group
Category drop down, enter 8,000 in the Flat Minimum Amount to Pay Participant field, and select the 'Yes' for the Minimum Recovery option and 'Immediate' for the Recovery Start option.
Answer: B