Which of the Following Is a Disadvantage of Straight Commission

question 76

Multiple Choice

Which of the following is a disadvantage of straight commission plans?

• A) The plans are only suitable for companies with large sales budgets.
• B) The plans trigger high selling costs even without significant sales.
• C) Such plans cannot be administered easily by most firms.
• D) Salespeople conduct too much customer service.
• E) Salespeople are reluctant to change territories.

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Definitions:

Union-Mandated

Requirements or actions imposed by labor unions, often through collective bargaining or union regulations, that employers must follow.

Management Rights

The prerogatives and authorities held by employers to direct and control business operations, including hiring, work assignments, and discipline.

Lean Production

A manufacturing methodology aiming at minimizing waste and maximizing efficiency by using less of everything compared to mass production.

Community Flexibility

The ability of a community to adapt to changes, challenges, or opportunities in its environment.