Which of the Following Best Summarizes the Difference Between Independent

question 72

Multiple Choice

Which of the following best summarizes the difference between independent sales representatives and company salespeople?

• A) Company salespeople tend to be more highly motivated than independent sales representatives.
• B) Independent sales representatives are paid on a commission basis for products sold for which they do not take title to their products or hold inventory.
• C) Company salespeople are cheaper to employ due to the highly variable compensation plans that most prefer.
• D) Independent sales representatives focus more of their attention on customer service functions than company salespeople do.

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Definitions:

Income From Operations

Earnings generated from the normal business activities of a company, excluding income from other sources like investments.

Decentralization

The distribution of decision-making authority to lower levels in an organization, allowing closer proximity to decision-making and customer interaction.

Responsibilities Delegated

Tasks or duties assigned to a subordinate or team member by a person with authority or leadership within an organization.

Transfer Price

The price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments.