Which of the Following Statements Regarding Salesforce Compensation Plans Is

question 250

Multiple Choice

Which of the following statements regarding salesforce compensation plans is MOST ACCURATE?

• A)The most preferred compensation plan among sales people is the straight commission plan.
• B)Nonmonetary rewards are not very effective as salesforce motivators.
• C)New recruits are often more productive than seasoned professionals.
• D)Ineffective practices often lead to costly salesforce turnovers.
• E)The expense of training a new salesperson,including the cost of lost sales,is still lower than having to use a salary plus commission plan.

---

Definitions:

Net Income

Profit remaining after all operational, interest, and tax expenses have been subtracted from total revenue, reflected differently to avoid repetition.

Free Cash Flow

The amount of cash generated by a company after accounting for operational expenses and capital expenditures, indicating the company's ability to generate surplus cash.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment, aimed at improving future operations.

Income Taxes

Taxes levied by governments on individuals or entities based on their income or profits.