A Disadvantage of a Straight Commission Compensation Plan Is That

question 17

Multiple Choice

A disadvantage of a straight commission compensation plan is that

• A) it does not provide incentive to expand sales volume.
• B) it can discourage salespeople from providing customer service.
• C) it includes non-selling activities that take time away from selling.
• D) the overall compensation is usually lower than a straight salary compensation plan.
• E) it not perceived as equitable by most salespeople.

---

Definitions:

Bacteria

Bacteria are microscopic, single-celled organisms that can be found in virtually all environments and can be beneficial, neutral, or harmful to other forms of life.

Standard Normal Distribution

The standard normal distribution is a normal distribution with a mean of 0 and a standard deviation of 1, used in hypothesis testing and probability determination.

Normal Random Variable

A variable that follows a normal distribution, characterized by its bell-shaped curve, where the mean, median, and mode are all equal.

Standard Normal Distribution

A probability distribution that has a mean of zero and a standard deviation of one, used in many areas of statistical analysis.