Which of the following statements describes a disadvantage inherent in the straight salary compensation plan?
A) The straight salary plan causes the salesperson to experience uncertainty and insecurity of payment.
B) The plan makes it difficult for an organization to take corrective action to improve sales if the performance of the salesperson is low for a prolonged period.
C) A lack of incentive may cause efficient, high-performing salespeople to change jobs.
D) Directing salespeople toward tasks the company believes are important becomes difficult.
E) Management cannot project future compensation expenses of the sales force.
Correct Answer:
Verified
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