In an Effort to Overcome the Problems Typically Associated with the Straight

question 67

Multiple Choice

In an effort to overcome the problems typically associated with the straight salary compensation plans,many companies:

• A) ask salespeople to resort to high-pressure selling tactics.
• B) reduce the number of accounts assigned to salespeople.
• C) employ only college graduates as sales representatives.
• D) increase the number of sales managers.
• E) eliminate all commissions.

---

Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others, leading to more efficient international trade.

Comparative Advantage

The ability of an individual, company, or country to produce a particular good or service at a lower opportunity cost than competitors, leading to more efficient international trade.

Comparative Advantage

A principle in international trade that suggests a country should export goods in which it is more efficient and import those in which it is less efficient, compared to other countries.

Opportunity Cost

The act of selecting one alternative leads to the loss of possible gains that could have been obtained from other options.