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Future Shop, an Electronics Retailer, Is Considering Removing Commission for Its

Question 50

Multiple Choice
Future Shop, an electronics retailer, is considering removing commission for its sales staff from their compensation plan and compensating them on a straight salary basis.The following are all advantage of this approach except

Future Shop, an electronics retailer, is considering removing commission for its sales staff from their compensation plan and compensating them on a straight salary basis.The following are all advantage of this approach except


A) the employer has fixed, predictable sales force expenses.
B) straight salaries make it difficult to switch territories or quotas or to reassign salespeople.
C) a long-term perspective is encouraged.
D) straight salaries develop a high degree of loyalty among the sales staff.
E) salespeople know in advance what their income will be.

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