​By Switching Its Sales Agents to a Sales Neutral Profit

question 78

Multiple Choice

​By switching its sales agents to a sales neutral profit commission,the firm is trying to convince the agents

• A)​To not change their sales patterns,as it would not change their compensation
• B)Improve their compensation by pricing less aggressively
• C)Improve their compensation by pricing more aggressively (lowering prices)
• D)​None of the above

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Definitions:

1933 Act

Also known as the Securities Act of 1933, this U.S. law was enacted to protect investors by requiring transparency in financial statements so investors can make informed decisions about investments.

Registration Statement

A set of documents, including a prospectus, filed with a securities regulatory agency (such as the SEC in the U.S.) by a company intending to go public, disclosing essential financial and management information.

Rule 10b-5

A regulation under the Securities Exchange Act of 1934 prohibiting any act or omission resulting in fraud or deceit in connection with the purchase or sale of any security.

1933 Securities Act

A federal statute enacted to govern the offer and sale of securities, aiming to ensure transparency and fairness in the securities market by requiring disclosures through registration of securities.