Regarding Sales Force Compensation Methods

question 121

Multiple Choice

Regarding sales force compensation methods:

• A) combination plans provide some security and some incentive.
• B) straight commission avoids the need to consider a sales quota.
• C) straight salary provides the most incentive.
• D) sales quotas play no role in any of the methods.
• E) None of these alternatives is correct.

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Definitions:

Capital Goods

Long-term assets that are used in the production of other goods and services, such as buildings, machinery, and equipment, which are not consumed in the production process.

Borrows

refers to the act of obtaining money, goods, or services in exchange for a promise of future repayment.

Financial System

A network of institutions, markets, instruments, and mechanisms that facilitate the exchange of funds and the allocation of resources in an economy.

Certificate Of Indebtedness

A government or corporate bond that acknowledges a debt and the obligation to repay it with interest by a specified date.