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:

After-Tax Discount Rate

The rate of return after taxes have been calculated, used in evaluating the profitability of investment opportunities.

Income Tax Rate

The rate at which income is taxed for a person or a company.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health.

Straight-Line Depreciation

This is a method of allocating an asset's cost evenly across its useful life.