What Is the Main Benefit of Paying Salespeople a Combination

question 8

Multiple Choice

What is the main benefit of paying salespeople a combination of salary and commission?

• A) limiting the firm's risk of overly high commissions
• B) aligning employee goals and company strategy
• C) providing simple salary administration
• D) clearly linking pay with performance

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Definitions:

Full Capacity Sales

Full Capacity Sales represent the maximum sales level a company could achieve utilizing its available capacity without incurring additional capital expenses.

Net Income

Net income, also known as net profit, is the total earnings of a company after subtracting all expenses, taxes, and costs from total revenue; it indicates the financial health and profitability of a business.

Fixed Assets

Assets with a useful life extending beyond one year, used in the operations of a business, such as property, plant, and equipment.

Corporate Financial Planning

Involves the development of long-term operational plans for a company, ensuring adequate funding and maximizing shareholder value.