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Changing from a Straight Salary Plan to a Combination Salary

Question 63

Multiple Choice

Changing from a straight salary plan to a combination salary plus commission plan provides a number of benefits. Which of the following is not an advantage of the salary plus commission plan:


A) They are flexible.
B) They are simpler and cheaper to administer.
C) Commissions can be adjusted to reflect the profitability of products.
D) Commissions provide a fairly immediate reinforcement for the salesperson's efforts.
E) This type of plan is good for relatively complex products or services.

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