The most serious disadvantage of a straight-salary compensation plan is
A. that it builds little in the way of salesforce loyalty or commitment to the company.
B. that differences in salary levels among salespeople are often a function of seniority on the job instead of true merit.
C. that it offers little financial incentive to perform past a merely acceptable level.
D. the financial burden the firm suffers if the market declines or stagnates.
Answer: C. that it offers little financial incentive to perform past a merely acceptable level.
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Tryst, Inc. has a policy of accruing $2,300 for every employee as a vacation benefit. Sarah, an employee, took a vacation. Which of the following is the correct journal entry for the vacation benefit paid?
A) Vacation Benefits Payable 1,917 Vacation Benefits Expense 1,917 B) Vacation Benefits Expense 2,300 Cash 2,300 C) Vacation Benefits Payable 2,300 Cash 2,300 D) Vacation Benefits Expense 1,917 Vacation Benefits Payable 1,917