Which of the following statements regarding independent representatives is false?
A) They normally do not take title to the products they sell.
B) Independent representatives are compensated on a straight salary basis.
C) Manufacturers typically develop contractual agreements with several rep organizations.
D) They are independent sales organizations that sell complementary, but noncompeting, products from different manufacturers.
E) Each rep organization is assigned a geographical territory.

Question

Quizplus · Accepted Answer

Independent representatives are typically compensated on a commission basis, not a straight salary basis. This incentivizes them to sell more of the manufacturer's products as their income is directly tied to their sales.

Which of the Following Statements Regarding Independent Representatives Is False