Which of the following is not a reason for firms to choose a salary system rather than a commission system to compensate their employees?
A) If workers are paid on the basis of the number of units of output they produce, they may become less concerned about quality.
B) Commission compensation systems are riskier for employees than a salary system, and many workers dislike risk.
C) Research has shown that most companies will find that a salary system will be more profitable than a commission system.
D) It is often difficult to attribute output to particular workers.
C
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Of the following U.S. demographic groups, which tends to have the highest rate of unemployment?
A) whites B) blacks C) white teenagers D) black teenagers
Corporate profits are taxed twice because
A) taxes are collected on profits before profits are distributed to shareholders. B) the government wants to minimize the amount of tax paid on capital gains. C) it is economically efficient to reduce the amount of retained earnings. D) capital gains are not indexed to the rate of inflation.