Consider two successful sales companies. One company pays its salespeople a high commission, whereas the other pays
Question:
Consider two successful sales companies. One company pays its salespeople a high commission, whereas the other pays its salespeople a straight salary. Assume that both companies are paying their salespeople in an optimal manner. Explain potential differences in the firms that might help to explain the difference in pay policy.
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Incentive theory argues high incentive pay is optimal when a profitability of additional effo...View the full answer
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Related Book For 
Managerial Economics and Organizational Architecture
ISBN: 978-0073375823
5th edition
Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr
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