Which of the Following Statements About the Combination Compensation Plan

question 11

Multiple Choice

Which of the following statements about the combination compensation plan is true?

• A) Combination compensation plans are found more frequently in large firms than smaller ones
• B) When the salesperson's selling skill is the key to sales success, the incentive portion of his or her compensation should be relatively small
• C) The most popular combination compensation plan offers a base salary plus some proportion of incentive pay
• D) Commission rates are more often found in companies that use combination plans than in a company that simply uses a straight commission plan
• E) Combination compensation plans have all the limitations associated with straight salary and straight commission plans