Which of the Following Is a Major Disadvantage Associated with a Combination

question 61

Multiple Choice

Which of the following is a major disadvantage associated with a combination compensation plan?

• A) Its inability to be used as a motivation tool
• B) Its complexity
• C) Its inability to include a draw
• D) Its lack of flexibility in the context of motivating salespeople
• E) Its lack of flexibility in the context of controlling the activities of salespeople

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Definitions:

Military Expenditures

The funds spent by a country on its military forces, including salaries, equipment, and operations.

Marginal Tax Rate

The marginal tax rate is the percentage of tax applied to your income for each tax bracket in which you qualify, essentially the rate paid on the last dollar of your income.

Average Tax Rate

The percentage of total income that is paid in taxes, calculated by dividing the total amount of taxes paid by the total income.

Regressive

A term usually used to describe a tax system in which the tax rate decreases as the taxable amount increases, effectively placing a higher burden on lower-income earners.