Straight Salary Plans Are Typically Used When

question 107

Multiple Choice

Straight salary plans are typically used when:

• A)advertising is more important to the sale than the efforts of the salesperson.
• B)a team of salespeople is involved in the sale.
• C)the sale requires a long period of negotiation.
• D)individual results of sales team members cannot be measured.
• E)any of the above situations occur.

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Definitions:

Price Controls

Government regulations establishing maximum or minimum prices to be charged for specified goods and services, often intended to manage inflation or protect consumers.

Centrally Planned Economy

A type of economic system where decisions about production, investment, prices, and incomes are determined centrally by a government.

Capitalist Economy

A system of economy where the ownership of capital resources is in the hands of private individuals or companies, decisions regarding investments are privately made, and the determination of prices, output, and distribution of products is largely governed by the dynamics of competition in a free-market environment.

Price Mechanism

is the process by which the forces of supply and demand determine the price of goods and services in a market economy.