What Are Business Firms Attempting to Reward When They Pay

question 65

Multiple Choice

What are business firms attempting to reward when they pay salespeople a percentage of their sales

• A)work effort
• B)loyalty to the firm
• C)years of schooling
• D)years of experience

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Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business.

Selling Price

The price at which a product or service is sold to the customer.

Capital Structure

The composition of a company's funding through debt and equity, and how it impacts its risk and value.

Fixed Cost

Business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.