Commission plans are fair if:
A) Salaries are equivalent
B) Team selling is modified to meet the customer's needs
C) Territories have equal potential
D) Commission rates vary with the time of year
E) Commission plans are never fair

Question

Quizplus · Accepted Answer

A commission plan is fair when territories have equal potential, meaning that salespeople have the same opportunity to earn commission regardless of the territory they are assigned. This ensures that compensation is based on performance rather than luck of the draw. Salaries, team selling, and commission rate timing do not necessarily impact the fairness of a commission plan. The statement "commission plans are never fair" is not true, as there are certainly ways to design and implement fair commission plans.

Commission Plans Are Fair If