As a Sales Consultant Specializing in Designing Compensation Plans, You

question 8

Multiple Choice

As a sales consultant specializing in designing compensation plans, you advise your clients that the most influential factor is:

• A) To develop as many goals as possible with the plan.
• B) Drive multiple, specific salesperson behaviors.
• C) Align your pay plan with company strategy
• D) That the most expensive plan is typically the most motivating one.
• E) Design a plan to minimize salesperson compensation.

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Definitions:

Cash Dividend

A distribution of profits by a corporation to its shareholders in the form of cash.

Cash

Money in the form of coins or banknotes, especially that held by a person or business.

Stock Investments

Financial assets referring to shares purchased in other companies intended for income generation or capital gains.

Cost Method

An investment accounting approach where the investment is recorded at cost and adjusted only for dividends received, not market value changes.