Which of the following is the primary advantage of using a combination of salary and commission as compensation for salespeople?
A) provides a guaranteed minimum salary
B) allows freedom to choose own work activities
C) completely links to performance
D) offers simple administration
Question 2All of the following are disadvantages of straight commission plans EXCEPT ________.
A) salespeople avoid pushing hard-to-sell items
B) salespeople fail to service small accounts
C) payments are complicated to calculate
D) significant variations in pay exist
Question 3Edward is the new sales manager at Wilson Auto Mart. The previous sales manager set commission rates informally without considering how much each sale covered expenses.
As a result, Wilson Auto Mart barely breaks even on each car sale once commissions are paid. Edward wants to motivate his sales force but avoid having excessive commissions.
All of the following questions are relevant to developing an effective sales compensation plan EXCEPT:
A) How much time does each Wilson salesperson spend with qualified prospects?
B) What are the motivation and skill levels of Wilson sales team members?
C) What is the average annual bonus received by Wilson's CEO?
D) What is Wilson's desired profit for each car sale?
Question 4The more satisfied organization members are with the present situation, the greater will be the motivation to change as the change will be easier to accomplish.
Indicate whether the statement is true or false
Question 5Managing expectations can be used to prevent _____ in your work and non-work relationships.
Fill in the blanks with correct word
Question 6What percentage of employers track sales performance using spreadsheets?
A) 15
B) 35
C) 60
D) 85
Question 7Which of the following structures is most likely to be the flattest?
A) mechanistic structure
B) matrix structure
C) bureaucratic structure
D) transactional structure
Question 8Using a straight salary to compensate salespeople is most likely ineffective because it ________.
A) discourages sales flexibility
B) lacks connection to performance
C) makes it hard to switch territories
D) depends on annual corporate profits
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