Which of the Following Statements Describes a Disadvantage Inherent in the Straight

question 47

Multiple Choice

Which of the following statements describes a disadvantage inherent in the straight commission compensation plan?

• A)It gives sales reps little financial security
• B)It provides sales managers with minimal control over their sales forces
• C)It can cause sales reps to provide inadequate service to smaller accounts
• D)It makes selling expenses less predictable
• E)All of the above statements describe disadvantages inherent in the straight commission compensation plan

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Definitions:

Commercial Space

Commercial Space generally refers to buildings or land intended for use in commerce or business activities, such as retail stores, offices, or factories.

Fifth Amendment

Refers to a part of the U.S. Constitution that protects individuals against self-incrimination, ensures due process of law, and provides protections against double jeopardy among other rights.

Caveat Emptor

A Latin term meaning "let the buyer beware," indicating that the buyer is responsible for checking the quality and suitability of goods before a purchase is made.

Let the Buyer Beware

A traditional caveat in commerce, indicating that the buyer assumes the risk regarding the quality and condition of the product being sold.