Leonard Sees That the Sales Force He Has Inherited Is

question 21

Multiple Choice

Leonard sees that the sales force he has inherited is not very motivated under the current combination plan.Leonard should increase:

• A)The salary.
• B)The incentive portion.
• C)The size of the territories.
• D)The draw.

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Definitions:

Common Stock

Equity shares issued by a company giving shareholders voting rights and a residual claim on corporate earnings and assets.

Par Value

Par value is the nominal or face value of a stock or bond as stated by the issuer, which might not reflect its market value.

Shares

Units of ownership interest in a corporation or financial asset, which provide dividends and voting rights to the shareholder.

Preferred Stock

A category of corporate ownership that ranks above common stock in both asset claims and earnings, typically accompanied by set dividend payments.