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:

Price Discrimination

A strategy in pricing where the same provider sells identical or almost identical products or services for different prices across various markets or segments.

Same Good

A same good refers to an identical product or item that is available across different sellers or markets, maintaining the same characteristics and quality.

Airlines

Firms that facilitate the air conveyance of people and goods.

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical, allowing for competition on factors other than price.