After spending two years in the insurance business, Anne McCauley decided to go to graduate school so that she could become qualified to teach high school English. Even though she had a reasonable amount of success in selling insurance, she could not deal with the variability in her income from month to month. She said, "In some months I earn all the money I need in a couple of days. In other months, I can work hard all month long and earn nothing." She wanted a career with more regular earnings. It sounds as though Anne was on a _________ compensation plan in the insurance business.

After spending two years in the insurance business, Anne McCauley decided to go to graduate school so that she could become qualified to teach high school English. Even though she had a reasonable amount of success in selling insurance, she could not deal with the variability in her income from month to month. She said, "In some months I earn all the money I need in a couple of days. In other months, I can work hard all month long and earn nothing." She wanted a career with more regular earnings. It sounds as though Anne was on a _________ compensation plan in the insurance business.


a. straight commission
b. straight salary
c. combination
d. cost-plus


Answer: a. straight commission


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