Suppose That a Company Hires Recent College Graduates for Two

question 223

Multiple Choice

Suppose that a company hires recent college graduates for two types of jobs, sales people and credit analysts. The hours worked and skill levels are the same for both positions. The sales people must "cold call," which many people find to be unpleasant. When comparing the salaries of the two positions, it is likely that the company pays the

• A)credit analysts more as a compensating differential.
• B)sales people more as a compensating differential.
• C)same salary for both positions because they require the same skill level.
• D)same salary for both positions because it would be illegal to do otherwise.

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Definitions:

Business

The act of engaging in trade, commerce, or activities for profit and growth.

Cash-Flow Projections

Estimates of a company's future financial liquidity over a specific period, accounting for incoming and outgoing cash.

First Year

Pertains to the initial period of time, typically referring to the first 12 months, in various contexts such as a company's operations, an educational program, or an individual's experience in a new role.

Business

Business refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.