Which of the Following Statements About Straight Commission Compensation Plans

question 33

Multiple Choice

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

• A) Compensation cost per unit is always lower under a straight commission plan
• B) Many firms, especially those engaged in relationship selling have abandoned straight commission plans
• C) Straight commission plans increase management's control over the sales force
• D) Companies operating with straight commission plans tend to have lower turnover rates when business conditions are poor than do companies with a straight salary plan
• E) Firms that are short on working capital should never use the straight commission plan

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