Multiple Choice
Which of the following statements about straight commission compensation plans is true?
A) Compensation cost per unit is always lower under a straight commission plan
B) Many firms, especially those engaged in relationship selling have abandoned straight commission plans
C) Straight commission plans increase management's control over the sales force
D) Companies operating with straight commission plans tend to have lower turnover rates when business conditions are poor than do companies with a straight salary plan
E) Firms that are short on working capital should never use the straight commission plan
Correct Answer:
Verified
Correct Answer:
Verified
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