Outcome # 3

Question 1

Sales incentive

Answer 1

Salespeople need to be so motivated so it is important to motivate them

Question 2

Types of Sales Incentive Plans-

straight salary plan

Answer 2

A compensation plan that permits salespeople to be paid for performing
various duties that are not reflected
immediately in their sales volume

Question 3

Types of Sales Incentive Plans-

straight commission plan

Answer 3

A compensation plan based on a

percentage of sales

Question 4

straight commission plan- DRAWBACKS

Answer 4

Salespeople will stress high-priced product

Customer service after the sale is likely to be neglected

turnover of trained sales employees tends to increase in poor periods

price concessions.

Question 5

salary plan and commission plan

Answer 5

new accounts is 50 percent base pay and 50 percent variable pay

existing accounts, a pay distribution of 70 percent base pay and 30 percent commission is typical

Question 6

salary plus bonus plans

Answer 6

A compensation plan that pays a salary plus a bonus achieved by reaching targeted sales goals

Question 7

Executive pay package

Answer 7

1. base salary
2. short-term incentives or bonuses
3. long-term incentives or stock plans
4. benefits
5. Perquisites

Question 8

Base salary

Answer 8

30 and 40 percent of total annual compensation

competitive benchmarking when setting executive pay

Question 9

short-term incentives or bonuses

Answer 9

A bonus payment may take the form of cash or stock and may be paid immediately (which is frequently the case), deferred for a short time, or deferred until
retirement

Question 10

long-term incentives

Answer 10

stock ownership is the desire for senior managers to have a significant stake in the success of the business

Question 11

Perquisites

Answer 11

Special nonmonetary benefits given to

executives; often referred to as perks