When Setting Salespeople's Compensation Level

question 283

Multiple Choice

When setting salespeople's compensation level,

• A)a company should pay everyone at least the going market wage for order getters.
• B)salespeople should be the highest-paid employees in the company.
• C)order takers should be paid more than order getters.
• D)the first step is to write job descriptions.
• E)a clause on bargaining must be included.

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Definitions:

Fair Value

The price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.

Fair Value Method

An accounting approach that assesses and assigns a price to a company's assets and liabilities based on current market value.

Effective Interest Method

A method of calculating the amortized cost of a bond or loan on the basis on an effective interest rate rather than the nominal rate.