Which of the Following Is True of Sales Compensation Practices

question 42

Multiple Choice

Which of the following is true of sales compensation practices across the globe?

• A) Most companies in Japan have adopted the U.S. system with its emphasis on commissions based on individual performance.
• B) Government intervention in pay determination aimed at leveling pay scales, is gaining popularity in European countries.
• C) Most multinational companies describe their sales compensation plans as global in nature.
• D) The International Labor Organization plays a key role in determining compensation practices worldwide.
• E) Most companies establish sales compensation practices locally either at the country or regional levels.

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Definitions:

Unjustified Negative

Refers to a negative outcome or judgment that is not supported by evidence or reasoning.

Membership

The state of belonging to a group or organization with a common interest or purpose.

In-Group Favoritism

The tendency to favor members of one's own group over those from external groups in terms of trust, favor, or privilege.

Tajfel's Theory

This social psychology theory posits that group membership creates in-group/self-categorization and enhancement in ways that favor the in-group at the expense of the out-group.