Firms often use quotas as part of compensation contracts for salespeople. A quota-based contract may stipulate, for

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Firms often use quotas as part of compensation contracts for salespeople. A quota-based contract may stipulate, for example, that the salesperson will receive a $10,000 bonus if yearly sales are $1 million or more, and no bonus otherwise. Identify actions a firm does not likely want taken that the employee will be motivated to take under such a contract.
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Economics of Strategy

ISBN: 978-1118319185

6th edition

Authors: David Besanko, David Dranove, Mark Shanley, Scott Schaefer

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