A Recently Opened Car Dealership Uses an Incentive Compensation Plan

Multiple Choice

A recently opened car dealership uses an incentive compensation plan for its sales people.The dealer provides money to its salespeople to cover basic living expenses and then shares a fixed percentage of the selling price of each car sold.However,the salesperson should repay the subsistence pay component within a year;otherwise he/she cannot continue in the employment of this dealer.Which type of sales compensation plan does this dealer adopt?

A) salary-plus-bonus
B) salary-plus-commission
C) commission-plus-draw
D) commission only