A commission plan is likely to be used when:
A) the sales force includes many part-timers.
B) the earnings of part-time salespeople are required to be tied to their performance.
C) a company does not emphasize on service to customers.
D) a company does not anticipate long-term customer relationships.
E) any of the above situations arises.

Question

Quizplus · Accepted Answer

A commission plan is suitable in all the mentioned situations as it aligns earnings with performance, is flexible for part-timers, and is often used when service and long-term relationships are not the primary focus.

A Commission Plan Is Likely to Be Used When