Compensation Plans May Need to Vary Depending on the Type

question 54

Multiple Choice

Compensation plans may need to vary depending on the type of salespersons. Which type of salesperson benefits from multi-tier targets that serve as stepping stones for achievement and sales contests with prizes that vary in nature and value?

• A) stars
• B) core performers
• C) dogs
• D) cash cows
• E) laggards

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Definitions:

Efficiency

The optimal allocation and use of resources to achieve the best possible output or outcome with the least waste of time and effort.

Equilibrium

A state in a market where demand equals supply, resulting in a stable price for a good or service.

Market Equilibrium

The state where the quantity demanded by consumers equals the quantity supplied by producers, leading to a stable market price.

Economists

Experts focused on analyzing how goods and services are produced, distributed, and consumed.