A competitive limitation to the straight salary plan for compensating a sales force is that:
A)It offers little direct incentive for the salespeople.
B)Management has more difficulty controlling the activities of the sales force.
C)It is the highest cost plan of all the major types.
D)Usually it is not simple to understand or economical to administer.
E)It usually is not workable when the job entails only missionary activities.

Question

Quizplus · Accepted Answer

The straight salary plan offers no direct incentive for salespeople to perform well or exceed expectations, which can limit their motivation and drive towards achieving high sales volume. This can lead to a lack of productivity and lower sales for the company, as salespeople may not be motivated to go above and beyond in their work.

A Competitive Limitation to the Straight Salary Plan for Compensating