Which of the Following May Make Weak Incentives Mutually Profitable

question 14

Multiple Choice

Which of the following may make weak incentives mutually profitable for both owner and sales staff of an auto dealer?

• A) If the sales staff is better able than the owner to bear the risk of a recession.
• B) If the owner is better able than the sales staff to bear the risk of a recession.
• C) If the owner and sales staff can equally bear the risk of a recession.
• D) If neither the owner nor the sales staff has to bear the risk of a recession.

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Definitions:

Preschool Boys

Young male children, typically under the age of 5, who are in the early childhood phase prior to attending kindergarten.

Delicate and Weak

This phrase refers to something or someone that is fragile, lacking in strength or vigor.

Girls

Young female humans, often defined before the onset of adulthood.

Identify

To recognize or establish who or what someone or something is; to ascertain the origin, nature, or definitive characteristics of.