Which of the Following Statements Is True of the Commission

question 40

Multiple Choice

Which of the following statements is true of the commission compensation system?

• A)It creates an overall healthy environment within a firm when the salespeople are very focused on their commission.
• B)It creates a uniform system in a firm where every employee is paid the same amount as commission, and it is independent of their performance.
• C)It creates a rigid compensation system where abuse is minimal, and it removes the frustration for employees and the entrepreneur.
• D)It creates frustration when a firm either does or does not change a commission program to reflect the growth of the firm.

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Definitions:

Infrastructure Depreciation

The systematic allocation of the cost of infrastructure assets over their useful lives, reflecting the consumption or the wearing out of physical assets like roads, bridges, and utility systems.

Maintenance Costs

Expenses incurred for the upkeep and repair of assets to ensure they remain operational and efficient.

Legally Separate

A state in which entities are distinctly independent in terms of ownership, liability, and legal identity.

Corporate Powers

The legal capacities and rights granted to a corporation by law, allowing it to act as a legal entity for conducting business, entering into contracts, and owning property.