Which of the following is an advantage of a straight commission plan?
A) It provides more nonfinancial kickbacks for a salesperson to work hard.
B) It ties a salesperson's compensation directly to his or her performance.
C) It encourages employees to take up activities that do not directly lead to sales.
D) Salespeople on straight commission have immense loyalty toward their companies.
E) Salespeople on straight commission are highly willing to monitor customer service programs.

Question

Quizplus · Accepted Answer

A straight commission plan ties a salesperson's compensation directly to his or her performance, providing a strong incentive to work hard and sell more. Nonfinancial kickbacks or perks are not part of this plan, and activities that do not directly lead to sales are discouraged. Loyalty and willingness to monitor customer service programs may vary among salespeople on straight commission, and are not necessarily advantages exclusive to this type of plan.

Which of the Following Is an Advantage of a Straight