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A Limitation of the Straight-Commission Method of Paying a Sales

Question 38

Multiple Choice

A limitation of the straight-commission method of paying a sales force is that this method usually:


A) Means that compensation expenses are a fixed cost.
B) Does not provide incentive for the sales representatives.
C) Attracts a poor caliber of sales representatives.
D) Makes it difficult to supervise and direct the activities of salespeople.
E) Discourages the sales representative from working long hours.

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