Examlex

Solved

Edward Is the New Sales Manager at Wilson Auto Mart

question 10

Multiple Choice

Edward is the new sales manager at Wilson Auto Mart. The previous sales manager set commission rates informally without considering how much each sale covered expenses. As a result, Wilson Auto Mart barely breaks even on each car sale once commissions are paid. Edward wants to motivate his sales force but avoid having excessive commissions. All of the following questions are relevant to developing an effective sales compensation plan EXCEPT:


Definitions:

Nash Equilibrium

A situation in a non-cooperative game where each player's strategy is optimal, given the strategies of all other players in the game.

Payoff

The return or gain that an individual receives from an investment or action.

Strategy

A plan of action or policy designed to achieve a major or overall goal, especially in business or politics.

Second Job

Employment taken in addition to one's primary job to supplement income, often requiring balancing multiple work schedules.

Related Questions