A Commission Plan Is Likely to Be Used When

question 51

Multiple Choice

A commission plan is likely to be used when:

• A) a sales force includes many part-timers.
• B) the earnings of part-time salespeople are required to be tied to their performance.
• C) a company does not emphasize service to customers.
• D) a company does not anticipate long-term customer relationships.
• E) any of these situations arises.

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Definitions:

Subunit Power

The extent of influence that a department or division within an organization has over decisions and resource allocations.

Resources

Assets, materials, or valuable items that individuals or organizations possess and can utilize to achieve specific goals or tasks.

Organizational Departments

Subdivisions within an organization, each with specific roles, responsibilities, and objectives, organized to streamline operations and achieve the organization's goals.

Variable Affects

Refers to influences that can cause changes in outcomes or conditions; these may vary depending on different factors or circumstances.