Question 1

What are the advantages of a direct reimbursement expense account plan?

Accepted Answer

A direct reimbursement expense

Question 2

Most sales managers consider opportunities for promotion and advancement second only to financial incentives as an effective sales force motivator.

Accepted Answer

A) True 
 B)False

Question 3

Gerald is having a difficult time recruiting salespeople. He learns competing firms are offering better _________ to meet the security needs of salespeople.

Accepted Answer

A)  Commissions 
B)  Draws 
C)  Territories 
D)  Benefits 
E)  Expense accounts 
A)  Commissions 
B)  Draws 
C)  Territories 
D)  Benefits 
E)  Expense accounts

Question 4

Foster offers his salespeople a variable commission rate. He pays his salespeople based on

Accepted Answer

A)  Straight salary 
B)  Sales of the most profitable items 
C)  Sales volume minus the expense account draws 
D)  Contests and bonuses 
E)  None of the above 
A)  Straight salary 
B)  Sales of the most profitable items 
C)  Sales volume minus the expense account draws 
D)  Contests and bonuses 
E)  None of the above

Question 5

Why do companies offer a draw against commissions?

Accepted Answer

Because co

Question 6

The goal in developing a salary compensation plan is to create:

Accepted Answer

A)  Security 
B)  Cooperation 
C)  Loyalty 
D)  Pay for performance 
E)  Variable defined compensatory valences 
A)  Security 
B)  Cooperation 
C)  Loyalty 
D)  Pay for performance 
E)  Variable defined compensatory valences

Question 7

Brett is part of a sales team. His task is to address existing and potential customers' technical questions. He rarely is involved in prospecting or closing sales. Brett will likely be paid:

Accepted Answer

A)  Commission 
B)  Draws 
C)  Combination 
D)  Benefits 
E)  Straight salary 
A)  Commission 
B)  Draws 
C)  Combination 
D)  Benefits 
E)  Straight salary

Question 8

What are the options when determining when a sale is credited to a salesperson?

Accepted Answer

The options include when the o

Question 9

Which of the following questions must a sales manager answer when designing an effective combination compensation plan?

Accepted Answer

A)  What size sales territory will yield the appropriate sales volume for providing equitable commissions and bonuses? 
B)  How can the most people be rewarded with the least expense? 
C)  Should there be a ceiling on incentive earnings? 
D)  How does the compensation plan support the company's mission? 
E)  All of the above are questions that a sales manager must answer when designing an effective combination compensation plan 
A)  What size sales territory will yield the appropriate sales volume for providing equitable commissions and bonuses? 
B)  How can the most people be rewarded with the least expense? 
C)  Should there be a ceiling on incentive earnings? 
D)  How does the compensation plan support the company's mission? 
E)  All of the above are questions that a sales manager must answer when designing an effective combination compensation plan

Question 10

When using team incentives, what questions need to be addressed?

Accepted Answer

Should incentives be tied to o

Question 11

Which of the following sales activities could be enhanced by the planning and implementing of a sales contest?

Accepted Answer

A)  Finding new accounts 
B)  Providing service assistance 
C)  Setting up point-of-purchase displays 
D)  Keeping up with technical developments in the industry 
E)  All of the above 
A)  Finding new accounts 
B)  Providing service assistance 
C)  Setting up point-of-purchase displays 
D)  Keeping up with technical developments in the industry 
E)  All of the above

Question 12

To be effective, quotas need to be:

Accepted Answer

A)  Specific 
B)  Measurable 
C)  Realistically attainable 
D)  All of the above 
E)  None of the above 
A)  Specific 
B)  Measurable 
C)  Realistically attainable 
D)  All of the above 
E)  None of the above

Question 13

The core of a salary compensation plan is:

Accepted Answer

A)  Salary and incentive payments 
B)  Straight salary 
C)  Benefits and draw 
D)  Perks and expense accounts 
E)  Quotas and bonuses 
A)  Salary and incentive payments 
B)  Straight salary 
C)  Benefits and draw 
D)  Perks and expense accounts 
E)  Quotas and bonuses

Question 14

Usually commissions are based on ___________ but it is becoming more popular to base commissions on ______________.

Accepted Answer

A)  Straight salary; profit 
B)  Expenses; volume 
C)  Sales volume; expense account draws 
D)  Contests; volume 
E)  Sales volume; profitability 
A)  Straight salary; profit 
B)  Expenses; volume 
C)  Sales volume; expense account draws 
D)  Contests; volume 
E)  Sales volume; profitability

Question 15

When deciding which form of expense reimbursement to use, sales managers must make trade-offs between tight control aimed at holding down total expenses and the financial well-being of salespeople.

Accepted Answer

A) True 
 B)False

Question 16

Drawing accounts are provided to salespeople on a straight commission plan as added incentive pay.

Accepted Answer

A) True 
 B)False

Question 17

Shorter time intervals between performance and the receipt of rewards increase the motivational power of a compensation plan.

Accepted Answer

A) True 
 B)False

Question 18

One of the problems in team selling is effective rewards for salesperson effort.

Accepted Answer

A) True 
 B)False

Question 19

When considering incentive plans, you should keep in mind that:

Accepted Answer

A)  All plans should be the same 
B)  Big companies do not need incentive plans while small companies need them 
C)  Shorter intervals between performance and receipt of rewards motivates salespeople 
D)  Team incentive plans should always be based on team performance 
E)  Bonuses should always be paid annually 
A)  All plans should be the same 
B)  Big companies do not need incentive plans while small companies need them 
C)  Shorter intervals between performance and receipt of rewards motivates salespeople 
D)  Team incentive plans should always be based on team performance 
E)  Bonuses should always be paid annually

Question 20

One negative outcome of complex compensation and incentive programs is they may lead to ____________ among salespeople.

Accepted Answer

A)  Reduced benefits 
B)  Confusion 
C)  Increased perks 
D)  Vertical salary compression 
E)  Alternative contest complaints 
A)  Reduced benefits 
B)  Confusion 
C)  Increased perks 
D)  Vertical salary compression 
E)  Alternative contest complaints

What are the advantages of a direct reimbursement expense account plan?

Most sales managers consider opportunities for promotion and advancement second only to financial incentives as an effective sales force motivator.

Gerald is having a difficult time recruiting salespeople. He learns competing firms are offering better _________ to meet the security needs of salespeople.

Foster offers his salespeople a variable commission rate. He pays his salespeople based on

Why do companies offer a draw against commissions?

The goal in developing a salary compensation plan is to create:

Brett is part of a sales team. His task is to address existing and potential customers' technical questions. He rarely is involved in prospecting or closing sales. Brett will likely be paid:

What are the options when determining when a sale is credited to a salesperson?

Which of the following questions must a sales manager answer when designing an effective combination compensation plan?

When using team incentives, what questions need to be addressed?

Which of the following sales activities could be enhanced by the planning and implementing of a sales contest?

To be effective, quotas need to be:

The core of a salary compensation plan is:

Usually commissions are based on _ but it is becoming more popular to base commissions on ____.

When deciding which form of expense reimbursement to use, sales managers must make trade-offs between tight control aimed at holding down total expenses and the financial well-being of salespeople.

Drawing accounts are provided to salespeople on a straight commission plan as added incentive pay.

Shorter time intervals between performance and the receipt of rewards increase the motivational power of a compensation plan.

One of the problems in team selling is effective rewards for salesperson effort.

When considering incentive plans, you should keep in mind that:

One negative outcome of complex compensation and incentive programs is they may lead to ____________ among salespeople.

Introduction to Sales Management in the Twenty-First Century

The Process of Selling and Buying

Linking Strategies and the Sales Role in the Era of Customer Relationship Management

Organizing the Sales Effort

The Strategic Role of Information in Sales Management Comprehensive Cases for Part One

Salesperson Performance: Behavior, Role Perceptions, and Satisfaction

Salesperson Performance: Motivating the Sales Force

Personal Characteristics and Sales Aptitude: Criteria for Selecting Salespeople

Sales Force Recruitment and Selection

Sales Training: Objectives, Techniques, and Evaluation

Cost Analysis

Evaluating Salesperson Performance

Filters

Exam 11: Salesperson Compensation and Incentives Comprehensive Cases for Part Two

What are the advantages of a direct reimbursement expense account plan?

Most sales managers consider opportunities for promotion and advancement second only to financial incentives as an effective sales force motivator.

Gerald is having a difficult time recruiting salespeople. He learns competing firms are offering better _________ to meet the security needs of salespeople.

Foster offers his salespeople a variable commission rate. He pays his salespeople based on

Why do companies offer a draw against commissions?

The goal in developing a salary compensation plan is to create:

Brett is part of a sales team. His task is to address existing and potential customers' technical questions. He rarely is involved in prospecting or closing sales. Brett will likely be paid:

What are the options when determining when a sale is credited to a salesperson?

Which of the following questions must a sales manager answer when designing an effective combination compensation plan?

When using team incentives, what questions need to be addressed?

Which of the following sales activities could be enhanced by the planning and implementing of a sales contest?

To be effective, quotas need to be:

The core of a salary compensation plan is:

Usually commissions are based on ___________ but it is becoming more popular to base commissions on ______________.

When deciding which form of expense reimbursement to use, sales managers must make trade-offs between tight control aimed at holding down total expenses and the financial well-being of salespeople.

Drawing accounts are provided to salespeople on a straight commission plan as added incentive pay.

Shorter time intervals between performance and the receipt of rewards increase the motivational power of a compensation plan.

One of the problems in team selling is effective rewards for salesperson effort.

When considering incentive plans, you should keep in mind that:

One negative outcome of complex compensation and incentive programs is they may lead to ____________ among salespeople.

Introduction to Sales Management in the Twenty-First Century

The Process of Selling and Buying

Linking Strategies and the Sales Role in the Era of Customer Relationship Management

Organizing the Sales Effort

The Strategic Role of Information in Sales Management Comprehensive Cases for Part One

Salesperson Performance: Behavior, Role Perceptions, and Satisfaction

Salesperson Performance: Motivating the Sales Force

Personal Characteristics and Sales Aptitude: Criteria for Selecting Salespeople

Sales Force Recruitment and Selection

Sales Training: Objectives, Techniques, and Evaluation

Cost Analysis

Evaluating Salesperson Performance

Filters

Usually commissions are based on _ but it is becoming more popular to base commissions on ____.