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1 | |
Financial compensation in the form of indirect payment includes |
| | A) | salary |
| | B) | commission |
| | C) | paid vacation |
| | D) | verbal recognition from the manager |
| | E) | All of the above |
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2 | |
All of the following are valid objectives of a sound compensation plan, except: |
| | A) | To motivate salespeople |
| | B) | To be fair to all members of the sales force |
| | C) | To ensure proper treatment of customers |
| | D) | To attract and keep competent salespeople |
| | E) | To keep results independent from rewards |
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3 | |
Simplicity is a hallmark of a good compensation plan, but sometimes simplicity conflicts with: |
| | A) | Fairness |
| | B) | Flexibility |
| | C) | Control |
| | D) | Motivation |
| | E) | Stability |
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4 | |
Combination salary and commission compensation plans are used: |
| | A) | by virtually no sales organizations |
| | B) | by about 30 percent of sales organizations |
| | C) | by about 50 percent of sales organizations |
| | D) | by about 70 percent of sales organizations |
| | E) | by almost 100 percent of sales organizations. |
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5 | |
A strength of a straight salary plan is: |
| | A) | it makes reps feel secure |
| | B) | it provides a direct incentive |
| | C) | it can easily be revised on a daily basis |
| | D) | it represents a variable cost to the organization |
| | E) | All of the above |
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6 | |
Commission plans usually consist of |
| | A) | a base |
| | B) | a rate |
| | C) | a starting point |
| | D) | All of the above. |
| | E) | None of A-B-C is correct. |
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7 | |
The best type of plan for weeding out ineffective sales reps is: |
| | A) | salary plan |
| | B) | commission plan |
| | C) | combination salary and commission plan |
| | D) | indirect payment plan |
| | E) | recognition plan |
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8 | |
In a progressive rate plan, a firm pays 5 percent on sales up to $20,000; 7 percent on the next $80,000; and 10 percent on everything over $100,000. If a sales rep makes sales of $130,000 for the quarter, what is her compensation? |
| | A) | $1,300 |
| | B) | $5,600 |
| | C) | $9,600 |
| | D) | 10,300 |
| | E) | None of the above |
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9 | |
A performance goal assigned to a marketing unit for a specific period of time is a: |
| | A) | salary |
| | B) | commission |
| | C) | quota |
| | D) | rate |
| | E) | base |
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10 | |
To help salespeople develop a sense of self-worth and a feeling of belonging to a group, firms offer: |
| | A) | straight commission plans |
| | B) | a quota based on sales volume |
| | C) | a quota based on gross profit |
| | D) | honors and recognition |
| | E) | None of the above |
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2003 McGraw-Hill Higher Education