Which of the Following Statements Is FALSE About Sales Incentive

question 54

Multiple Choice

Which of the following statements is FALSE about sales incentive plans?

• A) The Internet has made it easier for managers to track daily sales of sales staff scattered all over the world.
• B) If sales staff bonuses become viewed as deferred salary, then the bonuses lose their effectiveness in motivating discretionary effort from sales staff.
• C) It is difficult to motivate the range of behaviors needed of sales staff in a complex environment unless there are at least three sales performance measures in an incentive system.
• D) Sales incentives must be tied to the organization's broad strategic plans.

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Definitions:

Discount on Bonds Payable

The variance between a bond's nominal value and the lesser amount it is sold for in the market.

Long-Term Liabilities

Debts or obligations of a business that are due for repayment in a period longer than one year.

Installment Note

A loan that requires regular payments, or installments, over a period, which covers both principal and interest.

Interest Expense

The cost incurred by an entity for borrowed funds, typically expressed as a yearly rate.