Which of the Following Statements About the Straight Commission Compensation

question 75

Multiple Choice

Which of the following statements about the straight commission compensation plan is true?

• A) Financial administrators believe that commission compensation plans are anxiety producing and often try to dissuade organizations from implementing such a plan
• B) Straight commission compensation is appropriate for companies that require its sales force to engage in missionary selling
• C) Commission compensation plans are especially advantageous for companies that are short of working capital
• D) Salespeople on a straight commission plan are more likely to engage in making cold calls than salespeople on a straight salary plan
• E) Straight commission compensation plans are inherently unfair

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