What are the three considerations used in determining fixed pay and the compensation mix in sales compensation plans?
What will be an ideal response?
Question 2This type of sales incentive compensation plan offers the sales person a salary and further compensation for achievement of specific, exceptional sales goals
A) salary-plus-bonus
B) salary-plus-commission
C) salary-plus-draw
D) salary-plus-graduated commission
Question 3Wherever proprietary information is the subject of training, a company most often relies on which of the following sources of expertise?
A) expertise in university professors
B) expertise within the company
C) both expertise within and outside the company to provide training
D) expertise in competitor companies
Question 4A 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
Question 5Jasmine Black believes that the company should share part of the risk for her sales position. Which sales compensation plan should she pursue?
A) salary-plus-bonus
B) salary-plus-commission
C) commission-plus-draw
D) commission-only
Question 6Which scenario would be appropriate for using a salary-only plan
A) The salesperson is selling high-priced products
B) The salesperson has substantial influence over sales
C) The company wants to save money due to budget constraints
D) The company wants to create competition among its sales staff
Question 7With which type of sales commission plan does an employee earn a higher rate for all sales made in a given period if the sales level exceeds a predetermined level?
A) commission-plus-draw
B) straight
C) multiple-tiered
D) graduated
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