A recently opened car dealership uses an incentive compensation plan for its sales people. The dealer provides money to its salespeople to cover basic living expenses and then shares a fixed percentage of the selling price of each car sold

However, the salesperson should repay the subsistence pay component within a year; otherwise he/she cannot continue in the employment of this dealer. Which type of sales compensation plan does this dealer adopt?
A) salary-plus-bonus
B) salary-plus-commission
C) commission-plus-draw
D) commission only

Answer: C

Business

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