Which of the Following Statements About the Combination Compensation Plan

Multiple Choice

Which of the following statements about the combination compensation plan is true?

A) Combination compensation plans are found more frequently in large firms than smaller ones
B) When the salesperson's selling skill is the key to sales success, the incentive portion of his or her compensation should be relatively small
C) The most popular combination compensation plan offers a base salary plus some proportion of incentive pay
D) Commission rates are more often found in companies that use combination plans than in a company that simply uses a straight commission plan
E) Combination compensation plans have all the limitations associated with straight salary and straight commission plans