Which of the following is not an advantage of the commission compensation plan?
A) Income is linked to results.
B) There is a strong financial incentive to improve results.
C) Costs are reduced during slow sales periods.
D) Less operating capital is required.
E) Customer loyalty is enhanced.

Question

Quizplus · Accepted Answer

The commission compensation plan does provide several advantages, including linking income to results, providing a strong financial incentive to improve results, reducing costs during slow sales periods, and requiring less operating capital. However, it may not enhance customer loyalty, as salespeople may be driven primarily by their own financial goals rather than building relationships with customers.

Which of the Following Is Not an Advantage of the Commission