Management Uses a Combination Plan When It Wants To

question 6

Multiple Choice

Management uses a combination plan when it wants to:

• A)motivate salespeople to increase revenues while continuing to perform nonselling activities.
• B)emphasize that its sales force needs to concentrate on getting new and commissionable sales.
• C)make sure the sales force can easily understand exactly how it is being financially rewarded.
• D)engage in transactional selling relationships.
• E)accomplish all of the above

---

Definitions:

Cost of Debt

The effective rate that a company pays on its current debt, including bonds and loans.

Yield to Maturity

The total return anticipated on a bond if the bond is held until its maturity date, factoring in its current market price, interest payments, and face value.

Par Value

The face value of a bond or stock, representing the amount that will be returned to the holder at maturity, not reflecting the market value.

Market Value

Market value refers to the current price at which an asset or service can be bought or sold in a marketplace.