Which of the following is an advantage of a straight-commission compensation plan?
A) Operating costs are minimized during slack selling periods.
B) They are highly flexible, allowing frequent changes in compensation practices to achieve short-term objectives.
C) They are attractive to college graduates desiring an opportunity to earn while they train.
D) The salesforce's loyalty to the company is enhanced.
E) Salespeople often adopt high-pressure, non-customer-oriented sales techniques which increase total sales.

Question

Quizplus · Accepted Answer

A straight-commission compensation plan minimizes operating costs during slack selling periods because the salespeople only receive payment when they make a sale, meaning that the company does not have to pay them a salary or other benefits during times when they are not selling.

Which of the Following Is an Advantage of a Straight-Commission