Which of the Following Is Not a Reason for Firms

question 249

Multiple Choice

Which of the following is not a reason for firms to choose a salary system rather than a commission system to compensate their employees?

• A)Research has shown that most companies will find that a salary system will be more profitable than a commission system.
• B)It is often difficult to attribute output to particular workers.
• C)If workers are paid on the basis of the number of units of output they produce, they may become less concerned about quality.
• D)Commission compensation systems are riskier for employees than a salary system, and many workers dislike risk.

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Definitions:

Emerging Adulthood

This is a phase of the life span between adolescence and full-fledged adulthood which encompasses late teens through the twenties, marked by exploration of identity.

Lifespan Period

A phase of life that stretches from birth to death, encompassing all developmental stages and changes experienced throughout an individual's existence.

Arnett's Five Features

Key characteristics defining emerging adulthood, including identity exploration, instability, self-focus, feeling in-between, and possibilities/optimism for the future.

Adolescent Development

The physical, emotional, psychological, and social changes that occur during the transition from childhood to adulthood.