SOLVED

21) Which of the following is a loan from the company to the employee that is carried forward indefinitely until the employee sells enough to repay it? A) commission-plus-draw plan B) a recoverable draw C) a non-recoverable draw D) an interest-free loan 22) This type of commission draw acts as a salary because employees are not obligated to repay the loans if they do not sell enough to cover the amount. A) nonrecurring draw B) safe draw C) nonrecoverable draw D) graduated draw 23) With which type of sales commission plan does an employee earn a higher rate of commission for all sales made in a given period if the sales level exceeds a predetermined level? A) commission-plus-draw plan B) straight commission C) multiple-tiered commission D) graduated commission 24) In which situation is a commission-only plan best suited? A) The salesperson has little influence over the sales. B) The company is following a lowest-cost strategy. C) Extensive training or expertise is required. D) The sales cycle is long. 25) A company adopting a commissions-oriented sales compensation plan would most likely be pursing which type of competitive strategy? A) highest quality B) lowest-cost C) differentiation D) fairest-price 26) This term describes a set of skills necessary to perform a specific job or a group of similar jobs. A) skill range B) skill grade C) skill block D) skill structure 27) The HR manager of a company thinks that they have too many narrow pay grades within the organization. By getting the support from upper management, they decided to consolidate existing pay grades and ranges into fewer pay grades and broader pay ranges in order to create a flatter organization in terms of compensation. This is an example of which pay structure variation? A) broadbanding B) two-tier pay system C) pay compression D) multiple-tier pay system 28) Which of the following would NOT be considered as an advantage of broadbanding? A) elimination of narrow bands broadens employees’ job duties and responsibilities B) reduced organizational hierarchies that support job promotions C) reduced management layers that promotes quicker decision making cycles D) greater responsibility for supervisors for administering each employee’s compensation within the confines of the broadbands 29) Alejandro Martinez is responsible for setting up the pay structure for his company. He believes that newly hired employees should not be paid as much as established employees. Accordingly, what type of pay structure should Mr. Martinez use? A) broadbanding B) sales incentives C) two-tiered D) merit pay 30) What types of companies are most likely to utilize two-tier wage systems? A) unionized firms B) sales firms C) public sector companies D) private sector companies