Exam Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. Which of the following best describes the primary objective of a
sales compensation plan?
A. Minimize total sales costs
B. Motivate and reward desired sales behaviors
C. Reduce headcount in the sales organization
D. Align marketing campaigns with product launches
Answer: B. Motivate and reward desired sales behaviors
Rationale: The main purpose of a sales compensation plan is to
influence salesperson behavior to achieve company goals. It is not
merely about cost reduction or marketing alignment but about creating
incentives that drive desired outcomes.
,2. What is a “quota” in the context of sales compensation?
A. The maximum amount a salesperson can earn
B. The minimum required performance a salesperson must achieve to
earn commission
C. The total company revenue goal
D. A fixed salary amount
Answer: B. The minimum required performance a salesperson must
achieve to earn commission
Rationale: A quota sets a performance benchmark. Salespeople are
typically compensated based on meeting or exceeding this target.
3. Which type of sales compensation plan provides a fixed amount
regardless of sales performance?
A. Commission-only
B. Base salary
C. Bonus-for-target
D. Tiered commission
Answer: B. Base salary
,Rationale: A base salary is guaranteed and not tied directly to sales
performance. Commission and bonus structures are performance-
dependent.
4. In a commission plan, what does a “tiered rate” imply?
A. Commissions increase after reaching specified sales levels
B. Commissions decrease with higher sales to manage costs
C. The commission rate is fixed
D. Only new accounts are eligible for commission
Answer: A. Commissions increase after reaching specified sales levels
Rationale: Tiered commission rates are designed to reward higher
performance, incentivizing salespeople to exceed initial targets.
5. Which metric is commonly used to measure a salesperson’s
effectiveness over time?
A. Sales headcount
B. Revenue growth rate
C. Sales per employee
D. Quota attainment
, Answer: D. Quota attainment
Rationale: Quota attainment measures how well a salesperson meets
predefined sales targets, making it a core metric for effectiveness.
6. What is the primary advantage of a “commission-only” plan?
A. Predictable payroll expenses
B. High motivation for sales performance
C. Reduced need for management oversight
D. Alignment with marketing campaigns
Answer: B. High motivation for sales performance
Rationale: Commission-only plans align earnings directly with sales
performance, incentivizing high productivity, though they introduce
income variability for the salesperson.
7. Which type of sales plan balances stability and performance
incentives?
A. Base salary only
B. Commission-only