Giving Salespeople a Commission Is an Example of an Incentive

question 41

Multiple Choice

Giving salespeople a commission is an example of an incentive system called

• A)a piece-rate system.
• B)a productivity system.
• C)an effective system.
• D)a widget system.

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Definitions:

Demand Decreases

A decrease in the quantity of a product or service that consumers are willing and able to purchase at given prices.

Tax on Buyers

A fiscal charge imposed directly on purchasers, which shifts the demand curve downward, reflecting a decrease in the net price received by sellers.

Tax Burden

The measurement of taxes that a person or business must pay, often expressed as a percentage of income or profit.

Buyer Pays

Refers to the economic principle that the buyer is responsible for paying the price of a good or service, including any taxes or fees associated with the purchase.