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A Recently Opened Car Dealer Uses an Incentive Compensation Plan

Question 2

Multiple Choice

A recently opened car dealer uses an incentive compensation plan for its sales people.The dealer provides money to its salespeople to cover basic living expenses and then shares a fixed percentage of the selling price of each car that a salesperson sells.However,the salesperson should repay the subsistence pay component within a year;otherwise he/she cannot continue in the employment of this dealer.What type of sales compensation plan does this dealer adopt?


A) salary-plus-bonus
B) salary-plus-commission
C) commission-plus-draw
D) commission only

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