Which of the Following Is an Advantage of the Straight

question 83

Multiple Choice

Which of the following is an advantage of the straight commission plan?

• A) Typically, loyalty towards the company among the sales force is very high.
• B) The plan provides a maximum incentive and the opportunity to earn top money.
• C) It provides a sense of security and certainty of earning to salespeople.
• D) Salespeople are discouraged from using high-pressure selling tactics.
• E) Turnover in the sales force tends to be low with this plan.

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Definitions:

Marginal Utility

The incremental pleasure or usefulness attained by consuming an extra unit of a good or service.

Total Utility

The overall satisfaction or pleasure a person derives from consuming a certain amount or quantity of goods or services.

Limited Income

Income that is not sufficient to meet the minimum standard of living or personal financial needs.

Total Product Curve

Illustrates the total output of a good or service produced by a firm as a function of the input used.