A Recently Opened Car Dealership Uses an Incentive Compensation Plan

question 5

Multiple Choice

A recently opened car dealership 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 sold.However,the salesperson should repay the subsistence pay component within a year;otherwise he/she cannot continue in the employment of this dealer.Which type of sales compensation plan does this dealer adopt?

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

---

Definitions:

Optic Nerve

The cranial nerve that transmits visual information from the retina to the brain.

Blind Spot

A region on the retina where the optic nerve exits the eye, lacking photoreceptor cells, and therefore no image detection occurs, leading to a gap in the visual field.

Lens

In the context of the human body, the lens is a transparent, biconvex structure in the eye that focuses light onto the retina to facilitate clear vision.

Lamellated Corpuscle

A nerve ending found in the skin and other tissues, sensitive to pressure and vibration.