Suppose Compensation Is Given by W = 450,000 + 220 $\pi$

question 92

Multiple Choice

Suppose compensation is given by W = 450,000 + 220 $\pi$ + 15S, where W = total compensation of the CEO, $\pi$ = company profits (in millions) = $300, and S = Sales (in millions) = $500.What percentage of the CEO's total earnings is tied to profits of the firm?

• A)6.0%.
• B)7.9%.
• C)12.6%.
• D)43.4%.

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Definitions:

Personal Selling

A direct marketing approach where sales professionals interact face-to-face with potential customers to present products or services.

Secretary-Treasurer

An official who performs both the duties of a secretary and a treasurer, typically within an organization.

Shareholders' Resolution

A formal decision or motion adopted by the shareholders of a corporation during a meeting, often relating to governance, policy, or financial decisions.

Quorum

The minimum number of members required to be present at a meeting to make the proceedings of that meeting valid.