Question

Which of the following statements is true of compensating salespeople?

A. A salesperson's commission can only be based on a percentage of dollar sales.
B. Salespeople earn more than the office or production force.
C. Commissions paid to salespeople increase the need for working capital.
D. A straight salary offers the least security for a salesperson.
E. The straight salary method of payment reduces the amount of sales supervision needed.

Answer 1

The true statement about compensating salespeople is that salespeople earn more than the office or production force.

Step-by-step explanation:

The true statement about compensating salespeople is B. Lower interest rates encourage investment, whereas higher interest rates discourage it. Salespeople earn more than office workers or factory workers.

Compensating salespeople involves rewarding them for their efforts and achievements in generating sales and revenue for the company. Salespeople are typically paid a combination of a base salary and commissions based on their sales performance.

Commissions provide an incentive for salespeople to perform well and can result in higher earnings compared to employees in other departments who do not have a direct impact on sales.