Page 1 of 45
“ SALES MANAGEMENT 2 “ TEST BANK NEWEST 2025 ACTUAL EXAM UPDATED 2025 –
2026 SOLVED QUESTIONS , ANSWERS VERIFIED 100% GRADED A+ (LATEST
VERSION)
A good starting point for developing a sales force compensation plan is to:
a. understand the company's strategic goals.
b. choose methods.
c. determine job specifications.
d. set pay levels.
e. assemble the plan.
a. understand the company's strategic goals.
As a sales consultant specializing in designing compensation plans, you
advise your clients that the most influential factor is:
a. To develop as many goals as possible with the plan.
b. Drive multiple, specific salesperson behaviors.
c. Align your pay plan with company strategy
d. That the most expensive plan is typically the most motivating one.
e. Design a plan to minimize salesperson compensation.
c. Align your pay plan with company strategy
Building an effective sales force compensation plan boils down to:
a. Providing the highest level of wages possible.
b. Finding the right combination of salary and incentive pay.
c. Designing the plan around the seniority of the workers
d. All of the above
e. both a and b of the above
b. Finding the right combination of salary and incentive pay.
When establishing goals for the compensation plan, a sales manager must
consider:
, Page 2 of 45
a. competitive compensation packages in the marketplace.
b. the needs of firm and customers.
c. motivation considerations of the sales force.
d. costs of the plan.
e. all of the above.
e. all of the above.
According to the Customer-Product Matrix, sales positions which focus
primarily on New Business Development require a greater proportion of
__________ in the compensation plan than those sales jobs in the lower left-
hand quadrant (Account Management). Sales jobs consisting primarily of
Account Management involve a greater account servicing component and are
therefore better suited to a primarily __________ form of compensation.
a. salary, commission
b. salary, bonus
c. commission, salary
d. commission, commission
e. none of the above
c. commission, salary
As the Vice President of Sales for a new startup company, you decide to hire
and train your own field sales force. You also decide to pay your salespeople
with the most common type of compensation plan among companies. This pay
plan is the:
a. salary plan.
b. incentive plan.
c. combination plan.
d. straight commission plan.
e. none of the above.
c. combination plan.
____________ is the easiest plan to administer and budget for.
a. Salary plus commission
b. Salary plus bonus
c. Straight commission
d. Straight salary
e. Salary plus commission plus bonus
d. Straight salary
In your job analysis of the salesperson's activities, you discover that a
significant level of activity of a successful salesperson includes taking orders
for inventory replenishment, equipment installation and maintenance, and
shelf-management programs. Based on this analysis you know that a larger
percentage of the salesperson's pay should be _____________ as compared to
, Page 3 of 45
______________ for the best results.
a. incentive, salary
b. commission, bonus
c. salary, commission
d. commission, salary
e. none of the above
c. salary, commission
Disadvantages of paying straight salary include all of the following except:
a. not providing strong incentives for extra effort.
b. they are fixed costs.
c. they are a relatively insecure form of payment, as compared to commission.
d. they overpay the least productive members of a sales team.
e. new trainees may earn almost as much as experienced salespeople with
much less productivity.
c. they are a relatively insecure form of payment, as compared to commission.
Salary plans are not popular with salespeople because:
a. salaries are predictable.
b. salaries are stable.
c. they run the risk of having little or no income.
d. they do not provide strong incentives for extra effort.
e. none of the above - salary plans are always popular with salespeople.
d. they do not provide strong incentives for extra effort.
Which of the following statements about a straight salary compensation plan
is true:
a. Straight salary compensation plans are more complex to administer than
straight commission compensation plans.
b. A major limitation of straight salary compensation plans is that financial
rewards are not directly tied to any specific aspect of job performance.
c. Straight salary compensation is more commonly used with experienced
salespeople than with newly hired sales recruits.
d. Straight salary compensation plans are most useful when sales managers
want to motivate its sales force to achieve short-run sales volume increases.
e. It is inappropriate to use straight salary compensation for industries where
missionary selling is commonplace.
b. A major limitation of straight salary compensation plans is that financial rewards
are not directly tied to any specific aspect of job performance.
Straight salary compensation is typically used in industries where:
a. Missionary selling is the most common type of sales process used.
b. Team selling is seldom, if ever, used.
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c. Personal selling is more important to the overall marketing program than
other push strategies such as advertising.
d. A great deal of selling skill is required to close sales.
e. Few, if any, trade promotions are used.
a. Missionary selling is the most common type of sales process used.
The advantages of straight salary compensation include which of the
following?
a. salaries are a fixed cost to the firm and thus tend to decrease proportionally
as sales increase.
b. it allows maximum control over salespeople's activities.
c. it makes the division of territories an easier task.
d. tends to generate more loyalty from salespeople.
e. all of the above.
e. all of the above.
Although quite popular, salary compensation plans have some disadvantages.
For example, since the pay of salaried salespeople is not directly related to
performance, some of them may not make all of their calls or give the firm "a
full day's work for a day's pay." Nevertheless, salary compensation plans are
appropriate in a number of situations. Which of the following is/are most likely
to be among them?
a. salespeople selling complex aerospace products to the airlines
b. detail people for pharmaceutical companies
c. wholesale salespeople selling building materials
d. all of the above
e. both a and b of the above
Use the information below to answer the following two questions:
Given: a = straight salary
b = salary plus commission
c = straight commission
d = salary plus bonus
e = none of the above
Answer the series of questions. Recalling the text's discussion of the different
compensation plans, which of the above best fits the following descriptions?
e. both a and b of the above
" tends to overpay the least productive member of a sales team; it allows
maximum control over salespeople's activities; and although it makes it easier
for the sales manager to reassign salespeople to new areas, salespeople
usually require much closer supervision."
“ SALES MANAGEMENT 2 “ TEST BANK NEWEST 2025 ACTUAL EXAM UPDATED 2025 –
2026 SOLVED QUESTIONS , ANSWERS VERIFIED 100% GRADED A+ (LATEST
VERSION)
A good starting point for developing a sales force compensation plan is to:
a. understand the company's strategic goals.
b. choose methods.
c. determine job specifications.
d. set pay levels.
e. assemble the plan.
a. understand the company's strategic goals.
As a sales consultant specializing in designing compensation plans, you
advise your clients that the most influential factor is:
a. To develop as many goals as possible with the plan.
b. Drive multiple, specific salesperson behaviors.
c. Align your pay plan with company strategy
d. That the most expensive plan is typically the most motivating one.
e. Design a plan to minimize salesperson compensation.
c. Align your pay plan with company strategy
Building an effective sales force compensation plan boils down to:
a. Providing the highest level of wages possible.
b. Finding the right combination of salary and incentive pay.
c. Designing the plan around the seniority of the workers
d. All of the above
e. both a and b of the above
b. Finding the right combination of salary and incentive pay.
When establishing goals for the compensation plan, a sales manager must
consider:
, Page 2 of 45
a. competitive compensation packages in the marketplace.
b. the needs of firm and customers.
c. motivation considerations of the sales force.
d. costs of the plan.
e. all of the above.
e. all of the above.
According to the Customer-Product Matrix, sales positions which focus
primarily on New Business Development require a greater proportion of
__________ in the compensation plan than those sales jobs in the lower left-
hand quadrant (Account Management). Sales jobs consisting primarily of
Account Management involve a greater account servicing component and are
therefore better suited to a primarily __________ form of compensation.
a. salary, commission
b. salary, bonus
c. commission, salary
d. commission, commission
e. none of the above
c. commission, salary
As the Vice President of Sales for a new startup company, you decide to hire
and train your own field sales force. You also decide to pay your salespeople
with the most common type of compensation plan among companies. This pay
plan is the:
a. salary plan.
b. incentive plan.
c. combination plan.
d. straight commission plan.
e. none of the above.
c. combination plan.
____________ is the easiest plan to administer and budget for.
a. Salary plus commission
b. Salary plus bonus
c. Straight commission
d. Straight salary
e. Salary plus commission plus bonus
d. Straight salary
In your job analysis of the salesperson's activities, you discover that a
significant level of activity of a successful salesperson includes taking orders
for inventory replenishment, equipment installation and maintenance, and
shelf-management programs. Based on this analysis you know that a larger
percentage of the salesperson's pay should be _____________ as compared to
, Page 3 of 45
______________ for the best results.
a. incentive, salary
b. commission, bonus
c. salary, commission
d. commission, salary
e. none of the above
c. salary, commission
Disadvantages of paying straight salary include all of the following except:
a. not providing strong incentives for extra effort.
b. they are fixed costs.
c. they are a relatively insecure form of payment, as compared to commission.
d. they overpay the least productive members of a sales team.
e. new trainees may earn almost as much as experienced salespeople with
much less productivity.
c. they are a relatively insecure form of payment, as compared to commission.
Salary plans are not popular with salespeople because:
a. salaries are predictable.
b. salaries are stable.
c. they run the risk of having little or no income.
d. they do not provide strong incentives for extra effort.
e. none of the above - salary plans are always popular with salespeople.
d. they do not provide strong incentives for extra effort.
Which of the following statements about a straight salary compensation plan
is true:
a. Straight salary compensation plans are more complex to administer than
straight commission compensation plans.
b. A major limitation of straight salary compensation plans is that financial
rewards are not directly tied to any specific aspect of job performance.
c. Straight salary compensation is more commonly used with experienced
salespeople than with newly hired sales recruits.
d. Straight salary compensation plans are most useful when sales managers
want to motivate its sales force to achieve short-run sales volume increases.
e. It is inappropriate to use straight salary compensation for industries where
missionary selling is commonplace.
b. A major limitation of straight salary compensation plans is that financial rewards
are not directly tied to any specific aspect of job performance.
Straight salary compensation is typically used in industries where:
a. Missionary selling is the most common type of sales process used.
b. Team selling is seldom, if ever, used.
, Page 4 of 45
c. Personal selling is more important to the overall marketing program than
other push strategies such as advertising.
d. A great deal of selling skill is required to close sales.
e. Few, if any, trade promotions are used.
a. Missionary selling is the most common type of sales process used.
The advantages of straight salary compensation include which of the
following?
a. salaries are a fixed cost to the firm and thus tend to decrease proportionally
as sales increase.
b. it allows maximum control over salespeople's activities.
c. it makes the division of territories an easier task.
d. tends to generate more loyalty from salespeople.
e. all of the above.
e. all of the above.
Although quite popular, salary compensation plans have some disadvantages.
For example, since the pay of salaried salespeople is not directly related to
performance, some of them may not make all of their calls or give the firm "a
full day's work for a day's pay." Nevertheless, salary compensation plans are
appropriate in a number of situations. Which of the following is/are most likely
to be among them?
a. salespeople selling complex aerospace products to the airlines
b. detail people for pharmaceutical companies
c. wholesale salespeople selling building materials
d. all of the above
e. both a and b of the above
Use the information below to answer the following two questions:
Given: a = straight salary
b = salary plus commission
c = straight commission
d = salary plus bonus
e = none of the above
Answer the series of questions. Recalling the text's discussion of the different
compensation plans, which of the above best fits the following descriptions?
e. both a and b of the above
" tends to overpay the least productive member of a sales team; it allows
maximum control over salespeople's activities; and although it makes it easier
for the sales manager to reassign salespeople to new areas, salespeople
usually require much closer supervision."
