Straight commission plans are plans which
A) provide a straight salary to employees.
B) are useful when the organization wants salespeople to concentrate on listening to customers.
C) help to attract risk-averse employees.
D) are common among insurance and real estate agents.
E) are uncommon among car salespeople.

Question

Quizplus · Accepted Answer

Straight commission plans are typically used in industries such as insurance and real estate where salespeople are rewarded based on the amount of sales they make. Car salespeople may also be on a straight commission plan, but they are not uncommon as the question suggests. Salary-based plans (A) and plans that prioritize listening to customers over making sales (B) would not qualify as straight commission plans. Straight commission plans are also not designed to appeal to risk-averse employees (C).

Straight Commission Plans Are Plans Which