Which of the Following Statements About a Straight Salary Compensation

question 64

Multiple Choice

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

• A) Straight salary compensation is more commonly used with experienced salespeople than with new sales recruits
• B) The major limitation of straight salary compensation is that financial rewards are not tied directly to any specific aspect of job performance
• C) Straight salary compensation plans do not give sales managers the flexibility they have with commission plans
• D) Straight salary compensation plans are most useful when management wants to motivate its salespeople to achieve short-run sales volume increases
• E) Straight salary compensation is inappropriate for industries where missionary selling is commonplace

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Definitions:

Transformational Leadership

A leadership approach that inspires and motivates followers to exceed expectations by focusing on higher ideals and moral values.

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Creativity and persistence involve generating innovative ideas and solutions while persevering in the face of challenges and setbacks to bring those ideas to fruition.

Directive Leadership Style

A leadership approach that involves giving clear and specific instructions, often with close supervision of tasks.