Which of the Following Is an Advantage of a Limited

question 9

Multiple Choice

Which of the following is an advantage of a limited payment plan for controlling sales force expenses?

• A)High caliber salespeople generally prefer this plan.
• B)It is good when there are cost-of-living differentials among the territories.
• C)It eliminates cheating on expense accounts.
• D)Management can budget its sales expenses more accurately.
• E)It eliminates disputes between management and sales reps.

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Definitions:

Firm Level

Pertains to decisions, strategies, and performance metrics that are applied at the overall company or organization level.

Straight Commission Plans

Compensation schemes where employees' earnings are solely derived from the commissions on sales they generate.

Price Concessions

Adjustments made to the standard pricing of products or services, often provided to attract customers or finalize a deal.

Gainsharing

A performance-based compensation strategy where employees receive financial rewards for contributing to improvements in productivity, efficiency, or quality within their company.