In which of the following situations will a straight-commission compensation plan be most appropriate?
A)Great incentive is needed to get the sale.
B)Very little nonselling missionary work is required.
C)The company is financially weak.
D)The company is unable to supervise its sales force.
E)All of these situations would be suitable for straight-commission compensation.

Question

Quizplus · Accepted Answer

A straight-commission compensation plan is most appropriate in all these situations because it provides a strong incentive for salespeople to close sales, is suitable when little nonselling activities are required, can be beneficial for financially weak companies as it directly ties compensation to sales performance, and is useful when direct supervision of the sales force is challenging.

In Which of the Following Situations Will a Straight-Commission Compensation