From a Salesperson's Point of View,which of the Following Describes

question 88

Multiple Choice

From a salesperson's point of view,which of the following describes an advantage inherent in a straight salary compensation plan?

• A) The plan facilitates team selling.
• B) The plan gives salespeople financial security.
• C) The plan minimizes the financial burden on employers.
• D) The plan clearly links high performance with compensation.
• E) The plan typically increases work norms within the sales group.

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Definitions:

Substitution Effect

The economic understanding that as prices rise, or income decreases, consumers will replace more expensive items with less costly alternatives.

Output Effect

The impact on total production and economic output resulting from changes in price levels, influencing the quantity supplied or demanded.

Marginal Physical Product

The additional output that can be produced by adding one more unit of a specific input, while holding other inputs constant.

Additional Output

The extra amount of production generated as a result of increasing inputs or improving efficiency.