What Is the Primary Disadvantage of Using the Straight Salary

question 55

Multiple Choice

What is the primary disadvantage of using the straight salary approach to pay salespeople?

• A) relying on annual profits
• B) discouraging staff loyalty
• C) preventing territory changes
• D) failing to link effort with reward

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Definitions:

Necessities

Goods and services that are essential for survival, such as food, shelter, and healthcare, often characterized by inelastic demand.

Luxuries

Goods or services that are considered non-essential but are desired for their ability to provide comfort, convenience, or pleasure.

Elasticity Of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good.

Inputs

Resources used in the production process, including labor, capital, materials, and energy.