Despite Some Obvious Advantages of Straight Commission, It Has a Number

question 25

Multiple Choice

Despite some obvious advantages of straight commission, it has a number of drawbacks which include:

• A) encourages salespeople to secure only the best accounts in their territories.
• B) non-selling activities are apt to be neglected.
• C) salespeople are tempted to sell themselves rather than the company.
• D) both b and c of the above.
• E) all of the above.

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Definitions:

Automobile Insurance

A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident.

Payment

The transfer of money or goods in exchange for a product or service.

Straight Life Insurance

Insurance that requires the payment of premiums throughout the life of the insured and pays the beneficiary the face value of the policy upon the insured’s death.