With Respect to Combination Plans for Compensating a Sales Force

question 104

Multiple Choice

With respect to combination plans for compensating a sales force:

• A)Profit sharing should constitute a major segment of the total pay.
• B)Salary plus commission is the best pay plan for salespeople.
• C)The level of compensation should be set high enough so that the reps can pay their own travel expenses.
• D)A bonus should not be used in pay plans,mainly because they are misunderstood and often used incorrectly.
• E)None of these is correct.

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Definitions:

Gonioscope

An optical instrument used to examine the angle of the anterior chamber of the eye.

Keratometer

An instrument used to measure the curvature of the anterior surface of the cornea, particularly in determining the degree of astigmatism.

Exophthalmometer

An instrument used to measure the degree of forward displacement of the eyeball, as seen in conditions like Graves' disease.

Tonometer

An instrument used to measure the pressure inside the eye, important in glaucoma diagnosis.