Question 1

Many companies believe that money spent on recognition programs is a good investment.

Accepted Answer

A) True 
 B)False

Question 2

A company that expects its salespeople to perform a variety of activities such as gain new customers, retain key customers, establish new product in the marketplace and maintain a balance between sales volume and profitability might use a

Accepted Answer

A)   combination pay plan.
B)   straight commission pay plan.
C)   straight salary pay plan.
D)   none of the above.E) A) and D)
F) A) and C)

Question 3

A straight-commission compensation plan is suggested for salespeople such as missionaries and detailers.

Accepted Answer

A) True 
 B)False

Question 4

There is general agreement that salesforce loyalty to the company may be greater with straight-commission plans.

Accepted Answer

A) True 
 B)False

Question 5

The most serious disadvantage of a straight-salary compensation plan is

Accepted Answer

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 they offer little financial incentive to perform past a merely acceptable level.
D)   the financial burden the firm suffers if the market declines or stagnates.
E)   that high-pressure, non-customer-oriented sales techniques are often used to boost total sales.F) A) and C)
G) A) and D)

Question 6

When determining the financial compensation mix, the sales manager must

Accepted Answer

A)   decide what the commission payout event will be.
B)   determine what percentage in commission is to be paid to salespeople.
C)   determine the relative amounts to be paid in salary, commission, and bonus.
D)   decide on what type of benefits package to offer.
E)   review the compensation plans offered by other firms in the industry.F) All of the above
G) A) and D)

Question 7

Noncompensation rewards include factors related to the work situation and well-being of each salesperson.

Accepted Answer

A) True 
 B)False

Question 8

With a straight-salary compensation plan, the least productive members of the salesforce tend to be the most rewarded salespeople.

Accepted Answer

A) True 
 B)False

Question 9

With straight-salary compensation plans, there is less chance that high-pressure, non-customer-oriented sales techniques will be used.

Accepted Answer

A) True 
 B)False

Question 10

As compared to a straight-salary or combination plan, the straight-commission compensation plan is more complex and difficult to administer.

Accepted Answer

A) True 
 B)False

Question 11

Boredom is a typical problem with sales jobs.

Accepted Answer

A) True 
 B)False

Question 12

It is a good idea to reward both individual and team performance.

Accepted Answer

A) True 
 B)False

Question 13

The optimal reward system would balance the needs of the organization, its salespeople, and its customers.

Accepted Answer

A) True 
 B)False

Question 14

Current spendable income includes

Accepted Answer

A)   salaries and commissions, but not bonuses.
B)   salaries only.
C)   salaries, commissions, and bonuses.
D)   any cash award, but not bonuses such as merchandise or free trips.
E)   weekly or monthly income, but not rewards made only annually.F) None of the above
G) A) and E)

Question 15

Determining the appropriate financial compensation level depends upon an understanding of the duties expected for a particular sales position.

Accepted Answer

A) True 
 B)False

Question 16

Employees typically find verbal or written praise to be of little importance.

Accepted Answer

A) True 
 B)False

Question 17

It is relatively easy to design a sales contest that will maximally motivate every member of the salesforce.

Accepted Answer

A) True 
 B)False

Question 18

Among older salespeople, opportunity for promotion often eclipses pay as the most valued reward.

Accepted Answer

A) True 
 B)False

Question 19

Industries that have traditionally used a straight-commission-based compensation pay plan include all of the following except

Accepted Answer

A)   real estate.
B)   securities.
C)   automobiles.
D)   wholesalers.
E)   computers.F) A) and E)
G) A) and C)

Question 20

Salespeople appear to be fond of being recognized by their peers.

Accepted Answer

A) True 
 B)False

Exam 7: Motivation and Reward System Management

It is a good idea to reward both individual and team performance.

Correct AnswerverifiedShow Answer

Noncompensation rewards include factors related to the work situation and well-being of each salesperson.

Correct AnswerverifiedShow Answer

Current spendable income includes

Correct AnswerverifiedShow Answer

As compared to a straight-salary or combination plan, the straight-commission compensation plan is more complex and difficult to administer.

Correct AnswerverifiedShow Answer

Boredom is a typical problem with sales jobs.

Correct AnswerverifiedShow Answer

Many companies believe that money spent on recognition programs is a good investment.

Correct AnswerverifiedShow Answer

With a straight-salary compensation plan, the least productive members of the salesforce tend to be the most rewarded salespeople.

Correct AnswerverifiedShow Answer

When determining the financial compensation mix, the sales manager must

Correct AnswerverifiedShow Answer

There is general agreement that salesforce loyalty to the company may be greater with straight-commission plans.

Correct AnswerverifiedShow Answer

Among older salespeople, opportunity for promotion often eclipses pay as the most valued reward.

Correct AnswerverifiedShow Answer

A straight-commission compensation plan is suggested for salespeople such as missionaries and detailers.

Correct AnswerverifiedShow Answer

Industries that have traditionally used a straight-commission-based compensation pay plan include all of the following except

Correct AnswerverifiedShow Answer

The most serious disadvantage of a straight-salary compensation plan is

Correct AnswerverifiedShow Answer

Salespeople appear to be fond of being recognized by their peers.

Correct AnswerverifiedShow Answer

Employees typically find verbal or written praise to be of little importance.

Correct AnswerverifiedShow Answer

Determining the appropriate financial compensation level depends upon an understanding of the duties expected for a particular sales position.

Correct AnswerverifiedShow Answer

It is relatively easy to design a sales contest that will maximally motivate every member of the salesforce.

Correct AnswerverifiedShow Answer

A company that expects its salespeople to perform a variety of activities such as gain new customers, retain key customers, establish new product in the marketplace and maintain a balance between sales volume and profitability might use a

Correct AnswerverifiedShow Answer

The optimal reward system would balance the needs of the organization, its salespeople, and its customers.

Correct AnswerverifiedShow Answer

With straight-salary compensation plans, there is less chance that high-pressure, non-customer-oriented sales techniques will be used.

Correct AnswerverifiedShow Answer

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