Companies without large working capital often use commissions as a method of keeping selling costs directly related to sales.

Name: Companies without large working capital often use commissions as a method of keeping selling costs directly related to sales.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Companies with limited working capital may prefer commission-based compensation for sales staff, as it aligns sales costs with actual sales revenue, reducing fixed expenses.

Companies Without Large Working Capital Often Use Commissions as a Method