Changing from a Straight Salary Plan to a Combination Salary

question 34

Multiple Choice

Changing from a straight salary plan to a combination salary plus commission plan provides a number of benefits. Which of the following is not an advantage of the salary plus commission plan:

• A) They are flexible.
• B) They are simpler and cheaper to administer.
• C) Commissions can be adjusted to reflect the profitability of products.
• D) Commissions provide a fairly immediate reinforcement for the salesperson's efforts.
• E) This type of plan is good for relatively complex products or services.

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Definitions:

External Locus

Belief that external forces or factors beyond one's control dictate the outcomes of one's actions and life events.

Perception

The process of organizing and interpreting sensory information to make it meaningful.

Sensation Seeking Scale

A psychological assessment tool designed to measure an individual's propensity for seeking varied, novel, complex, and intense sensations and experiences.

College Students

Individuals enrolled in an institution of higher education aiming to achieve degrees or certificates.