A Recently Opened Car Dealer Uses an Incentive Compensation Plan

question 32

Multiple Choice

A recently opened car dealer uses an incentive compensation plan for its sales people.The dealer provides money to its salespeople to cover basic living expenses and then shares a fixed percentage of the selling price of each car that a salesperson sells.However,the salesperson should repay the subsistence pay component within a year;otherwise he/she cannot continue in the employment of this dealer.What type of sales compensation plan does this dealer adopt?

• A)salary-plus-bonus
• B)salary-plus-commission
• C)commission-plus-draw
• D)commission only

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Definitions:

Stress

A physical, mental, or emotional strain or tension resulting from adverse or demanding circumstances.

Emotional Problems

Issues related to managing emotions or feelings that can impact a person's well-being and mental health.

Physical Illnesses

Medical conditions that affect the body's normal physiological processes, often leading to discomfort, dysfunction, or distress.

Highest-Value Goals

Objectives considered most important or beneficial, prioritized over others due to their significant impact or value.