According to the textbook, most firms have a reward system for their sales force that

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BlackTom AI · Accepted Answer

First, let's restate what the question is asking: what does the textbook say about the typical reward system for a firm’s sales force?
Option 1: 'Is a combination of a base salary and some commission or bonus' This is a common structure in sales compensation: a stable base pay plus variable incentives to reward performance. It aligns the salesperson’s earnings with effort and results, which is the standard approach described in many texts.
Option 2: 'Pays straight commission' While straight commission is used in some contexts, it is less common as the sole form of compensation because it can create income instability and reduce motivation during slow periods. Most textbooks describe a mix rather than pure commission.
Option 3: 'Only pays salespeople commission based on the ROI of their sale' This is an unusual and overly narrow criterion. ROI-based commissions are not typically presented as the default framework; ROI is complex to attribute to individual sales and is not a universal standard described in general texts.
Option 4: 'Pays a straight salary but covers all expenses' A straight salary with expense coverage is more of a cost reimbursement policy than a description of a general sales reward system. It does not reflect the common mix of base pay and incentives emphasized in standard sales compensation discussions.
Option 5: 'Pays a straight salary' Similar to the previous option, this ignores performance-based incentives. Textbooks commonly highlight the variable component (commission/bonuses) to drive sales results and align with performance expectations.
In summary, while variations exist across organizations, the conventional and widely taught model emphasizes a base salary plus commission or bonuses, which is best captured by Option 1.

25S_IBM3062.01-1 Final Part 1

According to the textbook, most firms have a reward system for their sales force that

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