The Least Likely Administrative Problem Encountered Under the Straight Commission

question 16

Multiple Choice

The least likely administrative problem encountered under the straight commission method of compensating salespeople is:

• A)Dividing the commission when three sales reps are involved in the sale.
• B)Establishing the rate of commission.
• C)Determining the commission payments on installment sales.
• D)Controlling the ratio of selling expenses to net sales.
• E)Handling situations involving a drawing account.

Differentiate between ethical and unethical advertising practices.

Realize the importance of pretesting and tracking the success of advertising campaigns.

Understand how to measure the effectiveness of an advertising campaign.

Recognize the importance and impact of adhering to advertising regulations.

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Definitions:

Disbursements

The act of paying out or disbursing money, often related to the operational expenses of a business.

Interest Rate

The percent of principal charged by the lender for the use of its money or the return earned on an investment.

Net Float

The difference between checks written against a bank account and those that have been cleared, affecting the account's available balance.

Cheques

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a named party.